As Waymo expands operations globally and fights competitors like Elon Musk’s Tesla, Google’s autonomous vehicle division is on track to get a major capital infusion that will bring its worth past $110 billion.
This is an important milestone. The self-driving car company is wrapping up a deal to bring in $16 billion from backers, sources with knowledge of the matter told reporters. This latest investment would more than double what the business was previously valued at.
Major investors fuel expansion plans
Alphabet, the tech giant that owns Google and originally developed the autonomous driving venture through its experimental X division, plans to put up most of the money being raised. Four individuals close to the financing said the parent company will cover over three-quarters of the total amount.
Several prominent investment firms are joining the effort for the first time. These include Silicon Valley-based Dragoneer and Sequoia Capital, along with DST Global, which is backed by investor Yuri Milner.
Current backer Andreessen Horowitz intends to invest additional funds, while Mubadala, the Abu Dhabi government’s investment arm that already holds a stake, will add several hundred million dollars more. People briefed on the deal said the company’s yearly subscription-based revenue projections have climbed past $350 million.
In a statement, Waymo acknowledged its progress without discussing financial specifics. “While we don’t comment on private financial matters, our trajectory is clear: with over 20mn trips completed, we are focused on the safety-led operational excellence and technological leadership required to meet the vast demand for autonomous mobility,” the company said.
Representatives from Andreessen, Dragoneer, DST, Mubadala and Sequoia all declined to provide comment.
Leading the robotaxi market
The autonomous taxi operator has cemented its position at the front of the industry, logging more than 125 million miles of fully self-directed driving on American streets with relatively few safety problems. The company projects it will provide 1 million trips weekly this year across multiple metropolitan areas, including San Francisco, Los Angeles, Phoenix and Miami.
While riders primarily book trips through Waymo’s own mobile application, the service has also teamed up with Uber to operate in additional cities such as Austin and Atlanta. Alphabet is gathering more resources to support its nationwide expansion, including plans for New York.
The company began trials in international locations such as London and Tokyo last year as competition intensifies from Musk’s Tesla and China’s Baidu.
The company’s fleet uses a mix of cameras, laser-based Lidar sensors and comprehensive street mapping systems. These vehicles qualify as level four autonomous, meaning they operate without any driver present or need for human oversight.
Waymo is transitioning from Jaguar I-Pace SUVs to Hyundai Ioniq 5 models and larger vans manufactured by Chinese automaker Zeekr as part of efforts to reduce expenses.
The main rival is Tesla, which introduced its own “robotaxi” product in Austin, Texas, last year. In the end, the electric vehicle manufacturer wants to allow millions of its owners to rent out their vehicles to the service while they are not in use.
Tesla takes a very different strategy, using only cameras and no Lidar technology. This has led to persistent worries about safety regulations.
Following a fatal collision involving its autopilot technology, the carmaker recently lost a Florida court battle and was sentenced to pay $243 million in damages. Tesla’s “full self-driving” capability only meets level two autonomy standards, requiring drivers to remain alert constantly. Its Austin robotaxi operations still mandate either a safety monitor inside the vehicle or following in a separate car.
The autonomous driving firm previously secured $5.6 billion in funding during October 2024, which gave it a valuation exceeding $45 billion.
