Waymo’s $5B Debt Deal Sets Up Its Next Robotaxi Expansion Push

Waymo, the autonomous vehicle technology company under Google parent Alphabet, closed a $5 billion loan from high-profile lenders including PIMCO, Blackstone, and Sixth Street. TechCrunch reports this is Waymo’s first debt financing. The move marks a new funding phase for a company that has previously relied on Alphabet and outside equity investors.

Waymo said the financing comes as it accelerates commercial expansion in existing cities and pushes into new markets in the United States, Europe, and Japan. The company described the debt financing as an important step in its evolution into a “scaling commercial enterprise.” A Waymo spokesperson said the financing gives the company financial flexibility to strengthen its balance sheet and position it for “significant opportunities ahead.”

Waymo’s robotaxi growth has moved well beyond its early testing roots in Silicon Valley and the Bay Area. Phoenix became its first robotaxi market, and an August 2023 California permit helped kick off a more aggressive commercial push. TechCrunch reports Waymo now offers robotaxi services in 15 markets, including multiple California cities, Texas markets, and Florida markets, while testing in London and Tokyo with plans to launch in those cities.

Waymo’s growth has also drawn criticism and increased attention from regulators. The National Highway Traffic Safety Administration’s Office of Defects Investigation opened an investigation into illegal behavior by Waymo robotaxis around school buses, and the federal safety regulator also launched an investigation after a Waymo robotaxi hit a child near a school. The National Transportation Safety Board opened its own investigation after Waymo robotaxis were spotted illegally passing stopped school buses numerous times in at least two states.