Google and Sea (Shopee's Parent) Partner on Agentic Commerce — AI Shopping and Payments Come to Southeast Asia's Largest E-Commerce Platform

Key Takeaways

Google and Sea Ltd sign an MOU to co-develop AI integration across Shopee, Garena, and Monee in three strategic areas
Integration of Google's agentic AI into Shopee, which holds 52% of Southeast Asia's e-commerce market, will have enormous impact
E-commerce operators should closely monitor agentic commerce readiness and AP2 (Agent Payments Protocol) developments

Google and Sea Announce Strategic AI Innovation Partnership

Google, Shopee-owner Sea to develop AI tools for e-commerce, gaming

Alphabet Inc's Google and Southeast Asian technology conglomerate Sea Ltd announced a new tie-up on Thursday that will develop artificial intelligence tools for Sea's e-commerce and gaming products.

On February 19, 2026, Google, a subsidiary of Alphabet, and Southeast Asian technology giant Sea Limited announced the signing of a Memorandum of Understanding (MOU) for co-developing AI-powered innovations. The agreement spans all three of Sea's core businesses: e-commerce platform Shopee, gaming division Garena, and financial services arm Monee.

Sea Chairman and CEO Forrest Li stated that "AI is the next big technology revolution and has tremendous potential to positively transform our businesses," as reported by TechNode Global. Google Asia-Pacific President Sanjay Gupta responded that "by combining Google's AI leadership with Sea's innovative ecosystem, we will build products that define the future of gaming, commerce, and financial services."

Industry Trends and Partnership Context

The primary reason this partnership commands attention is Shopee's market dominance. According to a study by consulting firm Momentum Works, Southeast Asia's platform e-commerce market grew 12% year-over-year in 2024, reaching a GMV (Gross Merchandise Value) of $128.4 billion. Shopee holds an overwhelming 52% share with approximately $66.8 billion in GMV, far outpacing TikTok Shop (approximately 28%) and Lazada (Alibaba-owned).

The implications of Google's AI technology being fully integrated into this massive e-commerce platform extend well beyond Southeast Asia. The E-Conomy SEA 2025 report, jointly published by Google, Temasek, and Bain & Company, notes that "organizing agentic transactions remains an untapped opportunity in Southeast Asia" and that "60% of early adopters report returns of 3x or more."

Globally, Google has been accelerating its agentic commerce infrastructure buildout through its AI shopping partnership with Walmart and the development of Universal Commerce Protocol (UCP). The Sea partnership is positioned as the Southeast Asian chapter of this strategy.

Three Pillars — Gaming, Commerce, and Payments

The partnership is structured around three strategic domains.

The first pillar is "next-generation gaming experiences." Garena and Google will leverage AI solutions to enhance gaming experiences and drive productivity improvements in game development and operations. Garena is said to gain access to Google's latest AI research through early pilot programs. The two companies already have a collaborative relationship through the "Free Fire League" on Google Play, and this partnership is an evolution of that foundation.

The second pillar is "agentic commerce." Shopee and Google are co-developing an "AI agentic shopping prototype" that operates across both platforms. The vision is for AI agents to seamlessly assist at every stage — product discovery, engagement, and transaction. Shopee has already joined the YouTube Shopping Affiliate Program, laying the groundwork for connecting Google's content platform with Shopee's commerce ecosystem.

The third pillar is "agentic payments." Sea's financial services division Monee will participate in the development of Agent Payments Protocol (AP2), which Google announced in September 2025. AP2 is an open protocol enabling AI agents to securely execute online payments, with over 60 partners including Adobe, Mastercard, and PayPal. Monee plans to provide specialized feedback to ensure AP2 functions safely in Southeast Asia's diverse digital financial landscape, and to advance pilot implementations.

Impact on E-Commerce Operators

The impact of this partnership on e-commerce operators can be analyzed from three perspectives.

The competitive landscape in Southeast Asia will change. When Google's AI technology is integrated into Shopee's 52% market share, AI agents mediating search, recommendations, and checkout will become the standard environment. Sellers operating in the Southeast Asian market will need to optimize their product information to be selected by AI agents. Specifically, structured product data, accurate categorization, and comprehensive review information will be top priorities.

Cross-platform AI shopping is becoming reality. As the model connecting YouTube video content to Shopee purchases through seamless AI agents takes shape, the convergence of content marketing and e-commerce will deepen further. For businesses operating at the intersection of the creator economy and e-commerce, YouTube Shopping integration developments will be a critical indicator.

It is time to start preparing for AP2. AP2 is designed as an open protocol, and if pilots on Shopee/Monee succeed, it could be deployed across all of Southeast Asia. AP2 employs a two-layer cryptographically signed authorization structure consisting of "Intent Mandate" and "Cart Mandate," and is available as open source on GitHub. Operators considering payment infrastructure upgrades are advised to familiarize themselves with AP2 specifications now.

However, the partnership is at the MOU stage, and specific service launch dates have not been disclosed. It is expected to roll out gradually following prototype development and validation.

Summary

The strategic partnership between Google and Sea is a noteworthy development both in scale and impact, implementing an agentic commerce foundation into Shopee, which commands a majority of the Southeast Asian e-commerce market. The comprehensive framework covering gaming, commerce, and payments simultaneously goes beyond mere technology provision, potentially accelerating the AI transformation of Southeast Asia's entire digital economy.

Key points to watch going forward include the specific features and launch timeline of the AI agentic shopping prototype, progress on Monee's AP2 pilot, and how AI integration in Shopee's search and recommendations will change the business landscape for sellers. For e-commerce operators doing business in the Southeast Asian market, the shift to "sales strategies optimized for AI agents" is no longer a distant prospect.