Alphabet (GOOGL) Stock: Waymo Just Became a $110 Billion Robotaxi Giant

TLDR

• Waymo is finalizing a $16 billion funding round that values the company at $110 billion, more than doubling its $45 billion valuation from October 2024.
• Alphabet will provide over 75% of the new funding, with investors including Sequoia Capital, Dragoneer, DST Global, Andreessen Horowitz, and Mubadala contributing the rest.
• Waymo has completed over 20 million rides and 125 million autonomous miles, expecting to reach 1 million paid rides per week later in 2026.
• The company’s annual recurring revenue has grown to more than $350 million as it expands across San Francisco, Los Angeles, Phoenix, and Miami.
• The funding comes just days before Alphabet’s February 4 earnings call and places Waymo among the most valuable private tech firms globally.

Waymo is closing a $16 billion funding round that values the autonomous driving company at $110 billion. The self-driving car unit, backed by Alphabet, more than doubled its valuation from the $45 billion mark set during its last funding round in October 2024.

Alphabet Inc., GOOGL

Alphabet will contribute over 75% of the new capital. Major investors joining or expanding their stakes include Sequoia Capital, Dragoneer, DST Global, Andreessen Horowitz, and Abu Dhabi-based Mubadala.

The timing is noteworthy. The funding announcement arrives just days before Alphabet reports earnings on February 4.

Waymo has completed more than 20 million rides to date. The company has logged over 125 million fully autonomous miles on public roads across its operating cities.

The robotaxi service expects to hit 1 million paid rides per week later this year. Waymo currently operates in San Francisco, Los Angeles, Phoenix, and Miami.

Revenue Growth Accelerates

Waymo’s annual recurring revenue has climbed to more than $350 million. The figure reflects growing demand as the service expands to new markets and partnerships.

Alphabet’s dominant contribution to the funding round shows the parent company’s confidence in Waymo’s path forward. By providing most of the capital, Alphabet maintains control over the business strategy.

Waymo runs its own ride-hailing app for direct customer access. The company also partners with Uber in select markets, using a hybrid model to balance growth and costs.

International expansion is underway. Waymo has started testing in London and Tokyo, signaling plans for global operations once regulations permit wider deployment.

Different Approach Than Tesla

The funding highlights the gap between Waymo and Tesla in autonomous driving. Tesla launched a limited robotaxi service in Austin last year with plans to expand over time.

Tesla’s system uses only cameras and operates at Level 2 autonomy. Drivers must remain alert and ready to take control at all times.

Waymo’s vehicles qualify as Level 4 autonomous. This classification allows fully driverless operation in approved zones without human intervention.

Tesla has faced legal challenges related to its Autopilot system. A Florida court recently ordered Tesla to pay $243 million in damages following a fatal crash lawsuit.

Waymo uses cameras, lidar sensors, and detailed mapping technology. The approach costs more but has helped the company maintain a strong safety record.

Waymo remains private, but the $110 billion valuation makes it one of the world’s most valuable private tech companies. Alphabet holds a Strong Buy consensus rating from 29 analysts, with an average stock price target of $325.46, representing a 4.28% upside from current levels.

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