Temu is spending like a billionaire in its quest to conquer the US e-commerce market. The company invested heavily during the Super Bowl Sunday night, broadcasting its advertisement six times and offering $10 million in gifts.

Bernstein analysts estimate that last year, Temu spent over $1 billion on advertising outside the Asia-Pacific region.

American companies that rely on advertisements, such as Meta Platforms, are being buoyed by Chinese retail companies like Temu and Shein. These two companies represented 10% of Meta's revenue last year.

Amazon.com tells a different story. It recently reduced charges for merchants, potentially jeopardizing up to $350 million in revenue, according to Bernstein.

However, as the company, led by Andy Jassy, strives to improve its retail operating margins, which stood at a slim 2.5% last year, the competition from Chinese counterparts is likely to intensify their efforts.