Waymo raises $16 billion at $126 billion valuation to expand robotaxi rollout

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Waymo, the robotaxi company backed by Alphabet, announced that it has raised another $16 billion, placing its valuation at $126 billion, as the company looks to accelerate its expansion plans. Alphabet led the fundraising, which also drew participation from prominent venture capitalists and investment funds, according to the Associated Press.

In a blog post announcing the funding, Waymo said it plans to extend its reach beyond the six metropolitan areas where its robotaxis already provide rides. Those areas include locations in California, Arizona, Georgia, Texas and Florida, the company said.

Waymo said it is aiming to enter more than 20 additional cities, and named London and Tokyo among the destinations in its expansion plans. The company also said its robotaxis already provide more than 400,000 weekly rides.

The new valuation could renew discussion about whether Waymo might pursue an initial public offering, potentially as part of a spinoff from Alphabet, which also owns Google. Analysts cited by AP previously estimated Waymo’s value was about $30 billion just five years earlier, after earlier rounds of fundraising.

Waymo said it intends to use the money to move forward with “unprecedented velocity” while “maintaining our industry-leading safety standards,” in the language it used in its blog post.

The announcement arrives as Waymo faces intensifying competition among companies also seeking to scale robotaxi services. AP reported that Waymo is preparing for competition from Amazon-backed Zoox in San Francisco and from Tesla as Tesla pursues CEO Elon Musk’s promise to build a network of robotaxis throughout the U.S.

The company’s expansion goals come amid a record of problems that have drawn community backlash and regulatory inquiry. AP cited a case from San Francisco in which a Waymo robotaxi ran over and killed a 9-year-old cat, and a separate period when robotaxis stalled during an extended power outage and contributed to traffic chaos.

AP also said the National Transportation Safety Board is investigating complaints in Austin, Texas, about Waymo robotaxis operating unsafely around school buses carrying children.