Waymo secures $5 billion debt deal for robotaxi expansion

Waymo, the autonomous driving unit of Alphabet Inc., has secured a $5 billion private loan to fund the global expansion of its robotaxi services. This marks the company’s first foray into debt financing, moving beyond its previous reliance on equity markets. The deal, which was originally sought at more than $3 billion, was arranged by Goldman Sachs.

The financing is intended to support the rapid build-out of Waymo’s driverless fleet and manage rising artificial intelligence costs. The company plans to expand its operations to additional U.S. cities, including Las Vegas and Detroit, and is targeting international markets such as Japan and Singapore in the coming years.

Key participants in the loan include PIMCO, Blackstone, and Sixth Street. This new debt follows a $16 billion equity investment completed earlier this year, bringing Waymo’s total announced financing for the year to $21 billion. The company has set a goal of operating 1 million paid weekly rides this year.