Alibaba's Qwen AI chatbot crashes under demand as $433M campaign hits technical snags

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Alibaba's Qwen AI chatbot suspended its coupon giveaway after overwhelming user demand crashed the system during a $433 million promotional campaign. The e-commerce giant saw 10 million orders placed in just nine hours, exposing infrastructure limits as it tries to transform the chatbot into a shopping hub during China's Spring Festival holiday.

Alibaba's Qwen AI Chatbot Buckles Under Massive User Demand

Alibaba's ambitious push to transform its Qwen AI chatbot into a shopping powerhouse hit a significant roadblock when the system became overwhelmed by customer overload, forcing the company to temporarily stop issuing coupons

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. The technical difficulties emerged just days after the e-commerce giant launched a coupon giveaway designed to showcase the chatbot's capabilities beyond simple question-answering

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. The incident reveals the challenges companies face when scaling AI systems to meet explosive user demand, particularly in markets where consumers are rapidly adopting AI for shopping.

Source: ET

Source: ET

$433 Million Campaign Delivers 10 Million Orders in Nine Hours

Qwen began offering coupons to users on Friday that enable in-app purchases from Alibaba-owned retail platforms using chatbot prompts alone

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. This promotional campaign represents the first phase in a 3-billion-yuan ($433 million) plan to attract more users during China's annual Spring Festival holiday. The response exceeded all expectations. Alibaba reported that 10 million orders were placed within the first nine hours of the campaign, demonstrating massive appetite for AI for shopping among Chinese consumers

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. By Sunday, faced with an overwhelming flood of attempted orders over the weekend, Qwen announced on its official Weibo channel that it was overloaded and pleaded for users to give the chatbot a break

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Agentic AI Strategy Meets Infrastructure Reality

Since last month, Alibaba has sought to make Qwen a one-stop shop where users can access its other apps directly in the chatbot and complete payments, much like Google integrates its Gemini chatbot into apps like Maps

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. This ecosystem integration approach, which the company calls its Agentic AI strategy, aims to position the chatbot as a central hub for shopping functions across multiple retail platforms. However, the rollout has been marred by technical difficulties since the start of the coupon giveaway

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. Repeated purchase prompts on Monday generated different versions of a refusal, citing user oversubscription, according to Reuters checks.

Source: Reuters

Source: Reuters

What the Overloaded AI Chatbot Tells Users About Consumer Trends in AI

"Everyone's enthusiasm for experiencing AI shopping is too high! Currently there are too many participants in 'Qwen free order', we are working tirelessly to maintain the campaign's experience," replied Qwen to one of the purchase prompts on Monday

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. The chatbot added that shoppers would still have time to redeem their coupons, which will remain valid until February 28. This incident aligns with broader consumer trends in AI showing that users are increasingly relying on artificial intelligence to shop. According to PYMNTS Intelligence research, nearly half of power users have replaced their old approaches with AI-driven alternatives, an increase from 39% who said the same thing a month earlier

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. The pattern extends to mainstream users as well, jumping from 22% to 32%, indicating that growth among adopters is driven less by new users and more by deeper integration of AI into everyday workflows

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What to Watch as Alibaba Addresses Infrastructure Gaps

Alibaba declined to comment further on the technical difficulties. The company now faces pressure to scale its infrastructure rapidly to handle user demand before the Spring Festival campaign window closes. With coupons valid until February 28, Alibaba has roughly three weeks to resolve the capacity issues and restore confidence in its Agentic AI strategy. The incident raises questions about whether other companies pursuing similar chatbot-driven commerce strategies have adequately prepared for the infrastructure demands that come with mass adoption. As more users treat AI shopping as a default rather than an occasional tool, companies will need to ensure their systems can handle the transition from experimental feature to primary shopping channel.

Source: PYMNTS

Source: PYMNTS

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