The Lunar New Year, traditionally a peak commercial period in China, is witnessing an intensified battle among the nation’s leading artificial intelligence companies. As families prepare for gifting, travel, and festive purchases, tech giants are vying for dominance in the rapidly expanding AI market, spurred by anticipation for DeepSeek’s forthcoming V4 model.
The competition extends beyond simply launching new models; it’s a strategic push to capture consumer attention and establish a foothold in a sector deemed crucial for future economic growth. ByteDance, Alibaba, and Tencent are all actively deploying advanced AI capabilities, aiming to capitalize on the surge in demand during the Spring Festival. This year’s gala, often compared to the US Super Bowl, showcased the advancements in Chinese robotics, further highlighting the country’s ambitions in the tech sector.
DeepSeek’s disruption with its previous models last year has set the stage for this year’s “AI Spring Festival battle,” as it’s being described in Chinese tech circles. The launch of V4 is keenly awaited, and competitors are racing to unveil their own innovations to counter its potential impact. ByteDance, for example, has released Doubao 2.0, its latest AI chatbot, while Tencent has introduced a low-storage AI model, signaling a focus on accessibility and wider adoption.
The stakes are high. China’s AI market is experiencing rapid growth, and these companies recognize the importance of securing a significant share. The deployment of AI isn’t limited to chatbots; it’s being integrated into various aspects of the Spring Festival experience, from assisting consumers with product discovery to providing customer support during the peak shopping season. This broad application underscores the potential for AI to transform the retail landscape and enhance the overall consumer experience.
Beyond the commercial implications, the AI competition also reflects China’s broader industrial policy goals. The CCTV Spring Festival Gala, a nationally televised event, served as a platform to showcase humanoid robots developed by domestic startups – Unitree Robotics, Galbot, Noetix, and MagicLab. These robots performed complex routines, demonstrating China’s growing capabilities in robotics and manufacturing. This display aligns with the country’s ambition to become a global leader in both AI and robotics.
Tesla CEO Elon Musk recently acknowledged China’s rising prowess in the robotics market, stating that it would be Tesla’s “biggest competitor.” He specifically highlighted China’s strengths in scaling manufacturing and its rapid advancements in AI model development. This assessment underscores the seriousness of China’s challenge to established players in the global tech arena.
The robotics sector is also attracting significant investment, with companies like AgiBot and Unitree preparing for initial public offerings. This influx of capital is expected to further accelerate innovation and expansion within the industry. In 2025, AgiBot shipped over 5,100 humanoid robots, capturing a 39% share of the global market, demonstrating the scale of China’s robotics production.
The integration of AI extends into the cultural sphere as well. The gala also featured a collaboration between filmmaker Jia Zhangke and ByteDance’s Seedance 2.0, showcasing the potential for AI to enhance artistic expression. This partnership highlights a conscious effort to blend technological advancements with human creativity, emphasizing the importance of maintaining a human-centered approach to AI development.
The flurry of activity surrounding the Lunar New Year suggests that China’s AI landscape is poised for continued growth and innovation. The competition among ByteDance, Alibaba, and Tencent – often referred to as China’s “Three Kingdoms” in AI – will likely drive further advancements and shape the future of the industry. The success of these companies will not only impact the Chinese market but also have broader implications for the global AI ecosystem.
The timing of these releases, coinciding with the nine-day Lunar New Year holiday, is deliberate. It allows companies to maximize exposure to a large and engaged audience, generating buzz and driving adoption of their new AI technologies. The holiday period serves as a crucial testing ground for these innovations, providing valuable data and feedback that will inform future development efforts.
The “kingmaker” in this current cycle appears to be DeepSeek, with its V4 model. The anticipation surrounding its release is palpable, and competitors are closely monitoring its capabilities. The outcome of this competition will likely determine which companies emerge as leaders in China’s AI market and set the tone for future innovation in the sector.
