Autonomous vehicle technology company Waymo secured a $5 billion loan from a group of high-profile lenders. The Alphabet subsidiary announced the debt financing on Thursday. Lenders participating in the deal include PIMCO, Blackstone, and Sixth Street. Goldman Sachs served as the sole lead bookrunner for the transaction.
Other participants in the loan include Capital Group, Loomis Sayles, T. Rowe Price, Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Company, HPS Investment Partners, and Oaktree. Waymo characterized the debt financing as a major step toward becoming a scaling commercial enterprise. A company spokesperson stated that the funds will strengthen the balance sheet and provide financial flexibility.
Waymo moves past parent company funding
Prior to this debt deal, Waymo relied entirely on capital from Alphabet and outside investors. The company raised $16 billion in equity during February from investors including Dragoneer Investment Group, DST Global, and Sequoia Capital, pushing its valuation to $126 billion. Alphabet maintained its status as the majority investor during that round. Waymo previously raised $5.6 billion in a 2024 Series C funding round, $2.5 billion in 2021, and $3.2 billion in 2020.
Commercial operations scale across markets
Waymo started as an autonomous project inside Google and tested vehicles in Silicon Valley before launching its first robotaxi market in Phoenix in 2016. California granted final permits for commercial rides in August 2023. The company now operates in 15 markets, including Los Angeles, San Francisco, San Diego, Austin, Dallas, Houston, Miami, Orlando, and Tampa. Testing is underway in London and Tokyo ahead of planned international launches.
Regulatory scrutiny shadows rapid growth
Federal safety regulators are currently examining Waymo operations following several incidents. The National Highway Traffic Safety Administration opened investigations into robotaxis passing stopped school buses and a vehicle striking a child at six mph near a school. The National Transportation Safety Board also launched a separate probe into vehicles illegally passing school buses in at least two states.
