Alphabet's Waymo Raises $16 Billion in Funding, Doubles Valuation to $126 Billion

Alphabet’s self-driving car unit, Waymo, has successfully raised a $16 billion funding round, resulting in a post-money valuation of $126 billion. The funding marks Alphabet's commitment to supporting Waymo's expansion into new markets. This new valuation represents a significant increase from the previous funding round in October 2024, which saw Waymo valued at $45 billion after securing $5.6 billion in series C funding.

Waymo's co-CEOs, Tekedra Mawakana and Dmitri Dolgov, emphasized the company's prioritization of safety and its transition from proving a concept to scaling a commercial reality in a blog post. The latest funding round was led by Alphabet, with participation from existing backers such as Andreessen Horowitz, Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price. Additionally, new investors including Dragoneer Investment Group, DST Global, Sequoia Capital, Kleiner Perkins, and Alphabet's investment firm GV, contributed to the round. The capital injection is anticipated to accelerate Waymo's global expansion and maintain its safety standards, with plans to introduce the Waymo Driver to more cities in the United States and internationally in 2026.

Notably, Waymo's robotaxi service presently operates in Austin, the San Francisco Bay Area, Phoenix, Atlanta, Los Angeles, and Miami, with plans to extend to Dallas, Denver, Detroit, Houston, Las Vegas, Nashville, Orlando, San Antonio, San Diego, Washington, and London in the coming year. However, the company has encountered challenges amidst its rapid growth, including a software recall and an incident involving a child. The National Highway Traffic Safety Administration is currently investigating the latter incident.

Overall, Waymo remains at the forefront of the self-driving technology revolution, poised for further expansion and development in the global market.