Forrest Li, the founder of Sea Ltd., expressed optimism to employees about achieving a trillion-dollar market capitalization, the goal is a tenfold leap, as the Southeast Asian e-commerce giant embraces AI to boost its growth.
In a memo to employees on Monday, Li likened AI's rapid growth to the personal computer and smartphone revolutions, which broadened consumer access to previously exclusive products and services. However, Li acknowledged the challenges that lie ahead for the gaming and online-retail powerhouse in leveraging AI's potential for value creation.
"Success will demand precise decision-making, flawless execution, unwavering discipline, and fierce competition," Li noted in the memo, marking Sea's eight years as a public company. "The tech evolution makes becoming a trillion-dollar enterprise conceivable," he emphasized.
Li, renowned for his frequent memos to Sea's over 80,000 employees, has shifted his tone from last year when he cautioned about AI's tough transition. Since then, Sea has intensified its focus on AI, integrating it into daily operations, including customer service and gaming.
Li also addressed the rise in the company's share price, highlighting concerns about potential drops due to external factors, reminiscent of the 2021 downturn. He asserted Sea's heightened financial stability compared to the previous decade, eliminating the need for external funding for growth.
"Though external conditions remain unpredictable, I am more confident about our future," Li wrote, noting that Sea now achieves profitability across all three business segments. "Having spent eight years as a publicly traded company, we've gained better insight into market dynamics and navigation strategies. Should challenges arise, we maintain greater control over our decisions and fate."
Nonetheless, Li withheld specifics on Sea's advancing AI strategies and how it plans to tackle intensifying competition.
Sea faces formidable international contenders like ByteDance Ltd.'s TikTok Shop and Alibaba Group Holding Ltd.'s Lazada. New entrants such as Shein and PDD Holdings Inc.'s Temu are also vying for a foothold in Southeast Asia, a region with 675 million people increasingly shopping online. As Sea seeks further growth, a new battleground emerges in Brazil, extending Shopee's reach beyond its Singaporean base.
The company is also investing in new fields spanning digital finance to logistics, aiming to reinforce its dominance and demonstrate its growth prospects to investors.