Alphabet's Waymo seeks $15B funding amid robotaxi race with Tesla
What's the story
Waymo, a subsidiary of Alphabet, is reportedly in talks to raise over $15 billion in a new funding round expected to complete early next year. The move could value the company at as much as $110 billion, according to CNBC. This would be a major jump from its last fundraising milestone in October 2024 when it raised $5.6 billion at a valuation of $45 billion.
Growth strategy
Funding to support expansion of robotaxi operations
The funding raised in 2024 was led by Alphabet with a $5 billion commitment as part of a multi-year plan. Other investors included Andreessen Horowitz, Fidelity, Silver Lake, Tiger Global, and T. Rowe Price. The money was meant to expand Waymo's robotaxi operations. However, the latest talks indicate that the expansion is moving faster than expected and requires more capital input now than before.
Market presence
Waymo's robotaxi services are gaining traction
Waymo currently offers paid, fully driverless rides in several US markets, including Phoenix, the San Francisco Bay Area, Los Angeles, Austin, and Atlanta. The company recently revealed that it has crossed an estimated 450,000 paid rides per week. In 2025 alone, Waymo provided 14 million trips and is expected to end the year with over 20 million total trips since commercial service began in 2020.
Future prospects
Waymo's expansion plans for 2026
Waymo plans to launch services next year in Dallas, Denver, Detroit, Houston, Las Vegas, Miami, Nashville, Orlando, and San Antonio. It also plans to expand internationally with a launch in London in 2026. Alphabet CEO Sundar Pichai has hinted that Waymo could start contributing significantly to Alphabet's financials as early as 2027. This makes the current fundraising not just a technology bet but also a bridge toward future business impact within Alphabet.
Industry rivalry
Competition in the robotaxi market
The robotaxi race is heating up with Amazon-owned Zoox offering free driverless rides in select areas around the Las Vegas Strip and some neighborhoods in San Francisco. Tesla has also launched a Robotaxi-branded service, but it still has human drivers or safety supervisors onboard. These differences highlight the competitive gap today as Waymo focuses on fully driverless commercial service while many rivals are still transitioning from supervised autonomy to true driverless operations at scale.