China's tech giants ByteDance and Alibaba are gearing up to launch new AI models during the Lunar New Year holiday in mid-February, ramping up competition in the AI sector. ByteDance plans to introduce three models: Doubao 2.0, a large language model; Seedream 5.0, focused on image generation; and SeedDance 2.0, which will handle video generation. These launches come as ByteDance enjoys significant traction with its Doubao chatbot, boasting 163 million monthly active users, particularly through its integration with Douyin, China's version of TikTok. Alibaba is not falling behind. It will unveil Qwen 3.5, an AI model designed for complex reasoning tasks, during the same holiday. The model is expected to enhance the capabilities of the Qwen app, which recently surpassed 100 million monthly active users after its relaunch. Alibaba has ambitious plans to connect Qwen with its various platforms, including e-commerce and travel services, aiming to create a comprehensive assistant for everyday tasks. The integration of these services is projected to be completed by the first half of 2026. The timing of these releases is strategic. The Lunar New Year holiday offers a prime opportunity for companies to capture attention as many people in China take time off and engage more with digital content. As the competition heats up, DeepSeek is also reportedly preparing to launch its major model around the same time, indicating a broader race among China's tech companies to establish dominance in the AI market.