Alphabet said its Google unit has formed a strategic partnership with Sea Ltd to develop artificial intelligence tools for Sea’s e-commerce and gaming businesses.

US-listed Sea shares gained about 3% in morning trading.

Under the agreement, the companies will explore building an AI “agentic shopping” prototype for Sea’s Shopee platform, according to a joint statement. The initiative aims to expand AI capabilities beyond basic queries to more complex shopping and workflow tasks.

Shopee was Southeast Asia’s largest e-commerce platform in 2024 with a 52% market share, according to consultancy Momentum Works. The new AI features could strengthen its position as competition intensifies, including from Alibaba’s Lazada platform.

Google and Sea’s gaming arm Garena will also deploy AI solutions to improve productivity in game development. The companies said the tools are intended to streamline development processes and enhance user engagement.

The partnership follows a 2024 collaboration between Shopee and YouTube in the region’s e-commerce market.