Waymo, an autonomous driving company, is in talks to raise more than $15 billion in a new funding round that could value the business near $100 billion, with Alphabet set to lead the financing.
For years, Waymo was seen as one of Alphabet’s most ambitious but expensive bets, but the perception is starting to shift. The company has quietly built an annual revenue run rate of more than $350 million, driven by its expanding robotaxi operations. This traction has given Waymo the leverage to court not just its parent company, but also outside investors willing to back the next phase of growth.
Discussions have explored valuations as high as $110 billion, though final terms are still in flux. Even at the lower end, the proposed figure would more than double the company’s October 2024 valuation of over $45 billion. The earlier round was also led by Alphabet and reflected heavy investment in fleet expansion, software development, and city-by-city rollouts. The current talks suggest those investments are beginning to pay off.
A clear lead in the driverless race
Waymo’s position in the autonomous vehicle landscape is increasingly difficult to ignore. It has logged more fully driverless miles, served more paying customers, and secured more regulatory approvals than any rival in the US.. It is the only major operator running a commercial service with no safety driver inside the vehicle across multiple cities.
Competitors remain some distance behind. Tesla continues to test systems that still depend on human supervision, even as it talks up rapid progress. Amazon-owned Zoox has unveiled a purpose-built robotaxi without driver controls, but its public service remains limited and free of charge. Waymo, by contrast, is already operating as a paid service at scale, giving it valuable real-world data and a head start on refining unit economics.
Alphabet’s balancing act
Waymo sits within the company’s “other bets” division, which has come under pressure to prove financial discipline and chart clearer paths to independence. Allowing Waymo to raise significant external capital helps ease the burden on Alphabet’s balance sheet while testing investor appetite for the business as a near-standalone entity.
At the same time, Alphabet’s willingness to anchor the round signals continued belief in Waymo’s long-term potential. Autonomous driving remains capital-intensive, but Waymo’s progress has turned it from a costly experiment into one of the most credible commercial players in the field. If the new funding closes as expected, it could give Waymo the firepower to expand into more cities, grow its fleet, and cement its lead in a market many once doubted would ever arrive.
