In two years, Alphabet’s autonomous driving technology company called Waymo has completed no less than three financing deals. $ 2.25 billion in March 2020, $ 3.2 billion in July 2020 and $ 2.5 billion in June 2021. This latest fundraising was announced on Wednesday and constitutes Waymo’s third opening to outside investors.
Waymo raises $ 2.5 billion
On Wednesday, Waymp said that AutoNation, Canada Pension Plan Investment Board, Fidelity Management & Research Company, Magna International, Mubadala Investment Company, Perry Creek Capital, Silver Lake, T. Rowe Price Associates, Temasek and Tiger Global participated in the round.
The last round of funding therefore has the particularity of having integrated other investors than the only funds of Alphabet, the parent company of the project, which also owns Google. In the past, Waymo technology had not needed to attract other funds in its capital, and this since its creation in 2009.
Waymo never shared his valuation. That said, according to investor website PitchBook, the company is now worth $ 30 billion.
Funding, while waiting
Waymo must be able to continue to collect new money until the business begins operating. To appeal to investors and prepare for D-Day, Waymo has already laid down its objectives: delivery service, carpooling in Phoenix and freight partner.
For passenger transport, the company has already applied for a commercial deployment permit in San Francisco, California (thanks to the new legislation). Currently, only a few limited areas of Phoenix, Arizona are open to Waymo’s business activity.
“There is no greater challenge in artificial intelligence than to build and deploy fully autonomous technology at scale”, Dmitri Dolgov and Tekedra Mawakana, co-CEOs of Waymo, said in a statement.
In a report from Reuters, an analyst at Guidehouse Insights recalled that “Self-driving car startups are unlikely to be profitable for many years. They have to raise capital in order to finance this expansion on the operational side ”.