Waymo, the autonomous vehicle unit of Alphabet, secured a $5 billion loan from a consortium of lenders including Blackstone, PIMCO, and Sixth Street to support its robotaxi expansion. The debt financing, announced on Thursday, marks Waymo’s first major loan and aims to accelerate its commercial growth across the US, Europe, and Japan, the company said, describing the move as key to evolving into a scaling commercial enterprise.
The $5 billion debt facility includes other lenders such as Capital Group, Loomis Sayles, T. Rowe Price, Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Company, HPS Investment Partners, and Oaktree. Goldman Sachs acted as the sole lead bookrunner for the transaction. Previously, Waymo had raised capital primarily through equity rounds, including a $16 billion funding round in February that valued the company at $126 billion, led by Dragoneer Investment Group, DST Global, and Sequoia Capital, with Alphabet retaining majority ownership.
This loan adds financial flexibility for Waymo as it intensifies its efforts to expand robotaxi services in existing and new markets. The company has raised substantial equity capital in recent years, including $5.6 billion in 2024, $2.5 billion in 2021, and $3.2 billion in 2020. The new debt financing complements these efforts by strengthening Waymo’s balance sheet and positioning it to capitalize on growth opportunities in the autonomous vehicle sector, which is becoming increasingly competitive with players expanding globally.
Waymo’s spokesperson highlighted that the loan will help the company navigate significant upcoming opportunities. The company’s next major milestone will be the continued rollout of robotaxi services in multiple international markets, supported by this $5 billion debt facility, which was finalized this week, according to techcrunch.com.