Stock Markets January 29, 2026

ByteDance and Alibaba Set to Roll Out New AI Models During Lunar New Year

Major Chinese tech firms schedule flagship model launches for mid-February holiday, as consumer engagement and ecosystem integration become focal points

By Hana Yamamoto BABA
ByteDance and Alibaba Set to Roll Out New AI Models During Lunar New Year
BABA

ByteDance and Alibaba are preparing to introduce upgraded AI models during the Lunar New Year holiday in mid-February. ByteDance plans to release three models spanning language, image and video generation, while Alibaba is expected to launch an advanced reasoning model. Both companies are leveraging the holiday period for heightened user attention as competition in China’s consumer AI market accelerates.

Key Points

  • ByteDance plans to launch three AI models in mid-February: Doubao 2.0 (large language model), Seedream 5.0 (image generation), and SeedDance 2.0 (video generation). Impacted sectors: consumer tech and digital media.
  • Alibaba aims to release Qwen 3.5 during the same holiday window, focused on complex reasoning with strong math and coding capabilities. Impacted sectors: e-commerce, cloud services, and fintech due to planned ecosystem integration.
  • Holiday timing is strategic - Lunar New Year provides a concentrated period of consumer attention, which companies are using to maximize reach for new AI product rollouts. Impacted sectors: advertising, streaming, and online services.

China's leading technology companies ByteDance and Alibaba Group Holdings Ltd ADR (NYSE:BABA) are lining up new artificial intelligence releases for the Lunar New Year holiday in mid-February, escalating competition in the nation's AI landscape.

According to reporting by The Information, ByteDance intends to introduce three distinct models next month: Doubao 2.0, described as a large language model; Seedream 5.0, an image generation model; and SeedDance 2.0, a video generation model. Those product names and model types were cited by sources with direct knowledge of the plans.

In parallel, The Information reported that Alibaba plans to unveil Qwen 3.5, positioned as its new flagship model and specifically optimized for complex reasoning tasks. The reporting noted that the forthcoming models are expected to demonstrate strong math and coding capabilities.

The choice of launch timing is deliberate. The Lunar New Year holiday typically gives companies a concentrated period of consumer attention - most people in China take a week off and have more screen time for news and entertainment content, creating a larger potential audience for new product rollouts.

ByteDance currently holds an advantage in the consumer-facing AI arena with its Doubao chatbot, which had 163 million monthly active users as of December. The chatbot has been integrated into Douyin, ByteDance's short-video app and the Chinese counterpart to TikTok, expanding its consumer reach.

Alibaba has been advancing its own footprint since November when it launched the Qwen app, a revamped version of its chatbot that is powered by the earlier Qwen 3.0 model. The Qwen app has attracted more than 100 million monthly active users.

Earlier this month, Alibaba disclosed plans to connect Qwen with its e-commerce sites, online travel services and Ant Group's payments infrastructure. The company intends for the chatbot to function as a practical assistant capable of handling real-life tasks such as ordering food and booking travel. Citing employees familiar with the initiative, The Information reported that Alibaba's internal target is to complete integration of all Alibaba ecosystem services into the Qwen app during the first half of 2026.

The competitive landscape may tighten further: The Information has also reported that DeepSeek is planning to release its next major model around the same holiday period. The clustering of product releases around mid-February highlights how major developers are targeting the same high-engagement window to introduce upgrades and broaden user adoption.


Contextual note: Reporting on planned product names, launch timing, user metrics and internal targets in this piece follows the details provided by sources cited in The Information.

Risks

  • Execution and integration risk - Alibaba's aim to connect Qwen with e-commerce, travel services and Ant Group payments relies on completing integration across its ecosystem, targeted for the first half of 2026; delays could affect the planned utility of the chatbot. Impacted sectors: e-commerce and payments.
  • Competitive timing - Multiple firms, including ByteDance, Alibaba and reportedly DeepSeek, planning major model launches around the same holiday could fragment user attention and slow adoption for any single offering. Impacted sectors: consumer AI and digital media.
  • Product performance uncertainty - Although reports indicate the new models will offer strong math and coding capabilities, actual performance and user reception during a high-traffic holiday period remain uncertain. Impacted sectors: enterprise AI adoption and developer tools.

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