Alphabet-owned autonomous driving company Waymo has raised an additional $16 billion in fresh funding, reinforcing its ambition to scale self-driving taxi services across the globe. The funding round positions Waymo as the most valuable pure-play robotaxi company as competition intensifies from rivals backed by Tesla and Amazon.
The latest fundraising round, announced on Monday, places Waymo’s valuation at $126 billion, highlighting growing investor confidence in autonomous mobility as a long-term transportation solution.
Waymo began 17 years ago as an experimental “moonshot” project within Google. Over time, it evolved into a standalone autonomous vehicle company under Alphabet Inc. The new valuation underscores how far the company has progressed since analysts valued Waymo at around $30 billion just five years ago, following earlier fundraising rounds.
The sharp jump in valuation signals increasing belief that robotaxi services could eventually transform urban mobility and generate large-scale recurring revenue.
Alphabet Inc., which currently holds a market capitalisation of nearly $4.2 trillion, led the latest investment round. The funding also included participation from several major venture capital firms and institutional investment funds, underlining broad-based confidence in Waymo’s technology and business model.
The new valuation is expected to reignite speculation that Waymo could eventually pursue an initial public offering (IPO) as a spinoff from Alphabet. While no formal plans have been announced, analysts have long suggested that Waymo could become one of the largest autonomous vehicle listings if it chooses to go public.
Such a move would mirror Alphabet’s earlier strategy of allowing high-growth units to operate independently while retaining strategic oversight.
In a blog post, Waymo confirmed that its robotaxi service is currently operational in six metropolitan areas across California, Arizona, Georgia, Texas, and Florida. The company’s autonomous vehicles already provide more than 400,000 paid rides every week, making Waymo the largest commercial robotaxi operator globally.
Waymo said it plans to deploy the newly raised capital to expand aggressively into more than 20 additional cities, including major international markets such as London and Tokyo. This expansion would mark a significant step in Waymo’s transition from a U.S.-focused service to a truly global autonomous mobility platform.
“We are positioned to move forward with unprecedented velocity, while maintaining our industry-leading safety standards,” Waymo said in the post.
Despite maintaining a largely strong safety record, Waymo’s robotaxis have faced several high-profile incidents that have triggered community concerns and regulatory scrutiny.
Last year in San Francisco, a Waymo robotaxi ran over and killed a 9-year-old cat, prompting backlash from local residents. In a separate incident, multiple Waymo vehicles stalled at intersections during a prolonged power outage, contributing to traffic congestion when traffic signals went dark.
The National Transportation Safety Board (NTSB) is also reviewing complaints from Austin, Texas, where residents reported Waymo robotaxis allegedly operating unsafely near school buses carrying children. These incidents highlight the regulatory and public acceptance hurdles that autonomous vehicle companies must overcome as deployments scale.
Waymo is preparing for increased competition as other major players accelerate their own autonomous vehicle efforts. Amazon-backed Zoox is expanding its presence in San Francisco, while Tesla continues to pursue CEO Elon Musk’s long-standing vision of launching a nationwide robotaxi network across the United States.
With deep-pocketed rivals entering the field, the robotaxi race is shifting from technological development to large-scale deployment, regulatory navigation, and consumer trust.
Waymo’s $16 billion fundraising round and resulting $126 billion valuation mark a pivotal moment in the evolution of autonomous transportation. From its origins as a Google moonshot to its current status as the world’s leading robotaxi operator, Waymo has emerged as a central player in shaping the future of mobility.
While safety challenges and regulatory scrutiny remain, the company’s aggressive expansion plans, growing ride volumes, and strong backing from Alphabet position it well to defend its lead against competitors like Tesla and Amazon-backed Zoox. As the robotaxi market accelerates, Waymo’s next moves could define how quickly autonomous vehicles become a mainstream part of daily transportation.