Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) unit Waymo is reportedly seeking to raise approximately $16 billion in a new financing round, aiming for a valuation close to $110 billion.
Alphabet To Participate
According to a Reuters report citing Bloomberg, Waymo-parent Alphabet plans to contribute around $13 billion to this funding round.
The remaining funds are expected to come from investors such as Sequoia Capital, DST Global, and Dragoneer Investment Group. Waymo stated to Reuters that while they do not comment on private financial matters, their focus remains on safety-led operational excellence and technological leadership to meet the growing demand for autonomous mobility.
Waymo’s Fundraising Discussions
In December, The Information had reported that Waymo was in discussions to secure funding at a valuation of at least $100 billion. Waymo, which emerged from Google’s self-driving car project in 2016, operates the only U.S. paid robotaxi service without safety drivers. The company boasts a fleet exceeding 2,500 vehicles.
Meanwhile, the U.S. auto safety agency has launched an investigation after a Waymo vehicle struck a child in Santa Monica, California, last week, causing minor injuries.
Challenging Environment For Autonomous Vehicles
The recent incidents involving Waymo vehicles underscore the challenges faced by autonomous vehicle companies in ensuring safety and gaining public trust. On January 28, a Waymo robotaxi, developed in collaboration with Chinese automaker Zeekr, crashed into multiple vehicles in Los Angeles during testing.
This incident, coupled with the recent crash in Santa Monica, has drawn scrutiny from the National Highway Traffic Safety Administration (NHTSA).
Gary Black of The Future Fund LLC has expressed concerns that these incidents could also impact Tesla Inc. (NASDAQ:TSLA) as the NHTSA intensifies its scrutiny of autonomous driving technologies. Black cautioned against rooting against Waymo on safety issues, emphasizing the broader implications for the industry.
Despite these challenges, Waymo continues to expand its operations, recently conducting robotaxi testing in London, as part of its planned expansion into Europe.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
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