Waymo has closed a $5 billion loan from a group of institutional lenders, marking the Alphabet subsidiary's first use of debt financing. Goldman Sachs served as sole lead bookrunner, with participants including PIMCO, Blackstone, Sixth Street, Apollo, and others. The company said the funds will provide financial flexibility and support its evolution into a scaling commercial enterprise.
The loan comes after Waymo raised $16 billion in equity in February at a $126 billion valuation, with Alphabet remaining the majority investor. The company has historically relied on parent-company capital and outside equity rounds, including a $5.6 billion Series C in 2024. The move to debt suggests growing confidence in its cash flows as it expands robotaxi service to 15 U.S. markets and prepares for launches in London and Tokyo.
Waymo's expansion has attracted regulatory attention. Federal investigators have opened probes into incidents involving Waymo vehicles and school buses, including a low-speed collision with a child. The company maintains that its service has shown improved road safety outcomes in the communities where it operates.