Baidu has become a strategic investor of Kingsoft, a rival of Qihoo 360 in the security software market, according to a report by Tencent Technology.

The investment is nearly sealed, the report said, adding that Baidu has started to talk with Kingsoft as its business increasingly collides with Qihoo 360.

Kingsoft is China’s second largest online security company, following Qihoo 360.

Qihoo 360 saw its share of page views and unique views increase slightly from 9.9 percent and 10.02 percent in November, to 10.39 percent and 10.52 percent, respectively, in December, according to Alibaba Group's third-party web analytics subsidiary CNZZ.

Technology news website ZDNet confirmed with Qihoo on Jan. 4 that Qihoo and Google are nearing a partnership arrangement.