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Alphabet announced on Tuesday a significant investment of $5 billion into its self-driving car unit, Waymo. This funding round underscores Alphabet’s ongoing commitment to advancing autonomous driving technology and highlights Waymo as a key component of the company’s future growth strategy.
Ruth Porat, Alphabet’s outgoing finance chief, revealed the “multiyear” investment during the company’s second-quarter earnings call. Further details about the investment are expected to be included in Alphabet’s upcoming quarterly Securities and Exchange Commission filing.
Alphabet’s “Other Bets” division, which includes Waymo, reported $365 million in quarterly revenue, marking an increase from $285 million a year ago. However, the unit’s losses expanded to $1.13 billion from $813 million in the previous year.
Waymo CEO Tekedra Mawakana expressed gratitude for the substantial investment, emphasizing it as a strong endorsement of Waymo’s progress and potential. Currently, Waymo provides 50,000 paid trips weekly, primarily in San Francisco and Phoenix, and has completed a total of 2 million trips. The company recently expanded its service to all users in San Francisco by removing the waitlist.
The latest funding follows previous rounds in 2020 and 2021, which raised $2.25 billion and $2.5 billion respectively, with contributions from notable investors including Andreessen Horowitz and Fidelity Management & Research Company.
Alphabet’s increased investment in Waymo arrives amid delays from competitors such as General Motors’ Cruise, which has postponed the production of its autonomous shuttle, and Tesla, which has pushed back the unveiling of its CyberCab robotaxi.