In China, it is a tradition during the Lunar New Year to exchange gifts, and this year, several artificial intelligence (AI) companies have fully embraced this custom. In February 2023, Chinese AI firms distributed gift vouchers valued at $1.2 billion (over 25 billion CZK) to users, with the only requirement being the download and use of their applications. This approach highlights a unique strategy to attract new consumers in a competitive market.

The phenomenon has been dubbed "chung-pao wars," referencing the red envelopes traditionally given during the Lunar New Year, which this year fell on February 17. Many Chinese firms have previously offered their AI models for free, but in an innovative twist, they are not only allowing users access to their services at no cost but are now essentially paying them to engage with these platforms. This reflects a significant shift in strategy as companies vie for user attention and loyalty during a pivotal festive period.

Digital versions of the red envelopes have been a part of Chinese online culture for over a decade, thanks in part to Tencent's introduction of online money transfers. Companies have used this festive occasion in the past to provide various consumer subsidies. However, this year marks a distinctive focus on subsidies within the AI sector, aiming to enhance user engagement and application adoption during a time when many are celebrating the Lunar New Year.