Waymo Secures $5 Billion Loan From Blackstone, PIMCO and Sixth Street

Waymo has closed a $5 billion loan — the first debt financing in its history — from a syndicate of blue-chip lenders including PIMCO, Blackstone and Sixth Street as it accelerates its robotaxi expansion across the United States, Europe and Japan.

Waymo announced the deal on Thursday. Goldman Sachs served as the sole lead bookrunner. The lender group also includes Capital Group, Loomis Sayles, T. Rowe Price, Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Company, HPS Investment Partners and Oaktree.

The company described the debt financing as an important step in its evolution into a "scaling commercial enterprise." Until now, Waymo has relied entirely on capital from parent Alphabet and outside equity investors.

Why does the loan matter now?

The $5 billion facility gives Waymo a new funding lever at a moment of aggressive commercial push. A Waymo spokesperson said in an email that the debt financing will give the company financial flexibility to strengthen its balance sheet and position it to "capitalize on the significant opportunities ahead, especially as a scaling business with proven commercial demand and improved road safety outcomes in the communities in which we operate."

Equity investors have already placed a steep valuation on the business. In February, Waymo raised $16 billion in equity in a round led by Dragoneer Investment Group, DST Global and Sequoia Capital, pushing its valuation to $126 billion. Alphabet backed the round and remains the majority investor. Earlier rounds brought in $5.6 billion in a Series C in 2024, $2.5 billion in 2021 and $3.2 billion in 2020.

How did Waymo reach 15 markets?

The former Google self-driving project spent years testing autonomous vehicle technology on public roads in Silicon Valley and the Bay Area before expanding to Phoenix in 2016 — its first robotaxi market.

The commercial inflection point came in August 2023, when Waymo received the final permit needed to operate a robotaxi service and charge for rides in California. Since then, the company has launched in multiple California cities, including Los Angeles, San Francisco and, more recently, San Diego.

Waymo now operates in 15 markets, including:

• Austin, Dallas and Houston in Texas
• Miami, Orlando and Tampa in Florida
• Cities across California

The company is also testing in London and Tokyo and plans to launch in both cities, marking its push into Europe and Japan.

What headwinds does the company face?

Waymo's growth has drawn criticism and increased regulatory scrutiny. The National Highway Traffic Safety Administration's Office of Defects Investigation opened an investigation into Waymo robotaxis behaving illegally around school buses. The federal safety regulator also launched a probe after a Waymo robotaxi hit a child near a school; the child sustained minor injuries and was struck at about 6 mph.

Earlier this year, the National Transportation Safety Board opened its own investigation after Waymo robotaxis were spotted illegally passing stopped school buses numerous times in at least two states.

The $5 billion debt raise signals lenders' confidence that robotaxi demand can support leveraged growth — but Waymo will be scaling into new continents while federal safety regulators examine its record on the road.