The artificial intelligence (AI) revolution is transforming the search engine industry at breakneck speed. Two giants dominate this evolving battleground: Baidu (NASDAQ: BIDU), China’s top search and AI company, and Alphabet (NASDAQ: GOOGL), the global powerhouse behind Google.
Both are making massive investments in AI-driven search, cloud computing, and advanced models, but they operate under very different conditions. Baidu leads the Chinese market but faces fierce domestic competition, while Alphabet dominates globally and is leveraging AI to fortify its ecosystem.
For investors, the burning question is: Which company has the better long-term upside in the AI-driven search economy?
Baidu: China’s AI Search Leader Under Pressure
Baidu commands an impressive 75% market share in China’s search market, supported by its growing AI Cloud division, which saw a 27% YoY revenue increase in Q2 2025. Its non-advertising business also crossed RMB 10 billion for the first time, underscoring momentum beyond search advertising.