Taiwanese chipmaker MediaTek announced that the company has set up a research lab with Chinese Tencent with an aim to develop smartphone games and interactive games, and deepen the integration between AI (Artificial Intelligence) and smartphone online games, the Economic Daily News reported on March 8. Through the tie-up, Tencent's online games can be optimized on MediaTek's medium- to high-end platforms for better performance and lower power consumption. Early in the year, Alibaba also set up an AI research lab with MediaTek for IoT (Internet of Things) such as smart home device software. In addition, they also rolled out their first Smartmesh service in China that enables the connection across multiple devices using Bluetooth technology.