Alphabet holds a dominant position in the search market with an 89.85% share, significantly ahead of Microsoft’s Bing at 5.13%, according to recent data from StatCounter. The company is enhancing its search capabilities by integrating AI features, including Gemini 3, aimed at improving user engagement and generating more complex queries.
In January 2026, Alphabet is expanding its AI Mode across Search and the Gemini app in the U.S. to facilitate a more interactive, side-by-side browsing experience which allows users to compare information without losing context. As a result, Search revenue saw a 17% year-over-year increase in Q4 2025, indicating strong user engagement and growth opportunities.
Meanwhile, Microsoft is also upgrading Bing with AI capabilities through its partnership with OpenAI, while Baidu launched new AI tools to enhance query understanding. Alphabet’s share price has decreased 8.3% year-to-date, compared to the computer sector’s 6.4% gain, with its forward price-to-sales ratio at 9.52 compared to the sector’s 6.45.
