Singapore’s Sea sets up AI investment team as part of pivot beyond e-commerce

SEA has set up a dedicated team to scout for new investments in artificial intelligence, part of a broader effort to accelerate forays into the technology as it hunts for its next growth engine beyond e-commerce.

The investment unit sits directly under the president’s office, and is one of several initiatives Sea has established to dedicate capital towards internal and external AI projects, according to people familiar with the matter.

The group, led by long-time executive Zhang Endong, evaluates potential investments in startups globally, said the people, who asked not to be identified discussing private information. 

Zhang also spearheads several other recently established projects dedicated to analysing AI adoption within the company itself, the people added.

His startup investment team is one of several groups within Sea’s sprawling organisation that are exploring similar opportunities.

Zhang is one of the key executives tasked with helping to steer a company-wide effort to adopt and deploy AI. 

Sea, the operator of online retailer Shopee and the Garena gaming platform, is making structural shifts after CEO Forrest Li declared last year that a trillion-dollar market capitalisation was possible if the company doubled down on AI and “makes the right calls”.

It joins a growing number of companies, like rival Alibaba Group Holding, that are investing in AI to catalyse growth while competition in their core business intensifies. 

A company spokesperson declined to comment on that endeavour.

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The company’s stock has taken a beating since September – when it was valued at roughly US$116 billion – after this year’s surge in oil prices dampened consumer sentiment and inflated the cost of operations. Investors are now scrutinising its growth trajectory.

So far, Sea has been embedding AI in small ways, like through product recommendations and seller tools. In February, it said it would work with Alphabet’s Google to integrate AI across its operations – including developing AI shopping agents – to stay ahead of rivals.

South-east Asia’s dominant e-commerce player joins a wave of online retailers including Amazon.com and Japan’s Rakuten Group racing to roll out AI-powered shopping services. 

At home, it is facing off against Alibaba’s Lazada, which last year launched AI agents that help with refunds, delivery and marketing.

That is while ByteDance’s TikTok beefs up its AI tools with functions like helping merchants convert still images into videos with voiceovers.

The Chinese company is discussing expenditures of as much as US$70 billion this year as it builds out data centres and other AI infrastructure, according to people familiar with the matter. BLOOMBERG