Waymo expands private debt raise to $5bn to fund robotaxi growth

Autonomous driving company Waymo has increased its first debt financing to $5 billion. This move signifies a strategic shift towards private credit to support the expansion of its robotaxi operations. The financing was initially sought at over $3 billion, indicating a substantial increase in the capital targeted by the company. Goldman Sachs was responsible for arranging this transaction, which is now fully allocated and and expected to close shortly. This private debt raise provides Waymo with an additional source of capital to fund its growth initiatives. Historically, the company has relied heavily on equity financing for its expansion, including a $16 billion raise earlier this year at a $126 billion valuation. The current financing is priced at 5.25 percentage points above the benchmark rate. This significant capital infusion will support Waymo's efforts to scale its fleet and absorb the substantial costs associated with developing artificial intelligence and autonomous driving technology. The company has ambitious plans to expand its paid robotaxi services into new U.S. markets, such as Las Vegas and Detroit. In addition, Waymo is preparing for international market entry, with plans to launch services in Japan and Singapore as part of its strategy to build a global autonomous transportation network. Among the investors participating in this private loan are Pacific Investment Management Co, Blackstone, and Sixth Street Partners, according to sources familiar with the matter. Waymo has set a target to achieve one million paid weekly rides during 2026. This adds to the capital requirements associated with vehicle production, technology development and fleet deployment. The decision by Waymo to secure a $5 billion private debt financing round, involving major private credit players, highlights the growing role of private credit in funding capital-intensive technology companies. This trend suggests that large, established private equity and alternative asset managers are increasingly providing significant debt solutions to innovative firms looking to scale operations and accelerate market penetration, especially in sectors with high development and deployment costs like autonomous vehicles. It also signals a diversification of funding sources for tech giants beyond traditional equity rounds, as companies seek flexible capital to fuel expansion.