Waymo closes $5 billion loan as robotaxi business expands

Waymo said it has completed its first debt financing, borrowing $5 billion from lenders including PIMCO, Blackstone and Sixth Street as it expands its robotaxi operations. The autonomous vehicle company, controlled by Google parent Alphabet, is growing in existing cities and pursuing additional markets across the United States, Europe and Japan.

Goldman Sachs was the loan’s sole lead bookrunner. A Waymo spokesperson said the borrowing would provide financial flexibility and help strengthen the company’s balance sheet as its commercial business grows.

The loan adds a new source of financing for Waymo, which previously depended on its parent and outside equity investors. A $16 billion equity round in February valued the company at $126 billion. Dragoneer Investment Group, DST Global and Sequoia Capital led that round, with Alphabet participating and retaining its majority investor position.

Waymo operates robotaxi services in 15 markets. Its locations include Los Angeles, San Francisco and San Diego, alongside cities in Texas and Florida. It is also testing vehicles in London and Tokyo, where it plans to introduce services.

The expansion has drawn regulatory scrutiny. The National Highway Traffic Safety Administration’s Office of Defects Investigation is examining illegal robotaxi behavior around school buses and a separate incident in which a Waymo vehicle struck a child near a school, causing minor injuries. The National Transportation Safety Board also opened an investigation after repeated instances of Waymo vehicles illegally passing stopped school buses in at least two states.