Sea embeds AI in small ways like product recommendations and merchant tools.
issued Friday, May 29, 2026 · 1:40 p.m.
SEA has established a dedicated team to discover new investments in AI as part of a broader effort to accelerate its push into technology as it seeks its next growth engine beyond e-commerce.
The investment arm, which reports directly to the president’s office, is one of several initiatives created by Shi to put money into internal and external AI projects, the people said.
The group, led by longtime executive Zhang Endong, evaluates potential investments in startups around the world, said the people, who requested anonymity to discuss their identities. Zhang also leads several other recently established teams specializing in analyzing AI adoption within the company, the people added.
Sea, which operates online retailer Shopee and gaming platform Garena, has been undergoing a structural transformation since Chief Executive Forrest Lee declared that the company could reach a market capitalization of $1 trillion in 2025 if it doubled down on its AI and made “the right decisions.” It joins a growing number of companies like rival Alibaba Group Holding Ltd. that are investing in AI to fuel growth as competition in their core businesses intensifies.
Zhang is one of the key executives responsible for steering company-wide efforts toward AI adoption and adoption. A company spokesperson declined to comment on the initiative.
The company’s stock price has fallen since September 2025 (when it was valued at about US$116 billion) as the 2026 oil price hike dampened consumer confidence and increased operating costs. Investors are now scrutinizing its growth trajectory.
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Sea has historically embedded AI in small ways such as product recommendations and merchant tools. In February, the company announced it would work with Alphabet Inc.’s Google to integrate AI across its operations, including the development of an AI shopping agent, to stay ahead of competitors.
Southeast Asia’s leading e-commerce company joins a wave of online retailers including Amazon.com and Japan’s Rakuten Group that are racing to roll out AI-powered shopping services.
Domestically, it is up against Alibaba’s Lazada, which launched an AI agent to assist with refunds, delivery, and marketing in 2025. Meanwhile, ByteDance’s TikTok is ramping up its AI tools, including the ability to help merchants turn still images into narrated videos. Chinese companies are considering spending up to $70 billion in 2026 to build out data centers and other AI infrastructure, according to people familiar with the matter. bloomberg
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