Waymo, Alphabet's self-driving car company, has closed a $5 billion debt financing, the first time it has borrowed to fund its robotaxi business rather than selling equity, TechCrunch reported Thursday. The lender group includes Blackstone, PIMCO and a long list of large asset managers and private credit firms.

What Happened

Goldman Sachs served as sole lead bookrunner. Alongside PIMCO and Blackstone, the lenders are Sixth Street, Capital Group, Loomis Sayles, T. Rowe Price, Apollo, Blue Owl, Diameter Capital Partners, Franklin Templeton, Fidelity Management & Research Co., HPS Investment Partners and Oaktree.

Waymo did not say how it will spend the money. A company spokesperson told TechCrunch by email that the financing gives Waymo flexibility to strengthen its balance sheet and to pursue opportunities ahead, describing it as a scaling business with proven commercial demand and improved road safety outcomes.

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Why It Matters

Until now, Waymo has paid for its growth with equity. In February it raised $16 billion in a round led by Dragoneer Investment Group, DST Global and Sequoia Capital that valued the company at $126 billion. Earlier rounds brought in $5.6 billion in 2024, $2.5 billion in 2021 and $3.2 billion in 2020. Alphabet took part in the February round and remains the majority investor, according to TechCrunch.

Borrowing lets Waymo add capital without diluting those shareholders. The lender list also shows that mainstream bond investors such as PIMCO, T. Rowe Price and Capital Group, along with private credit firms such as Blue Owl, HPS and Sixth Street, are willing to lend to a company that is still expanding one city at a time. Running a robotaxi network ties up money in vehicles, sensor hardware, depots and charging, and those costs rise with each new market.

The mix of private credit and institutional bond money resembles the way AI infrastructure builders have financed capital-heavy expansion this year, layering debt on top of equity rather than relying on stock sales alone.

Where Waymo Operates

Phoenix became Waymo's first robotaxi market. The company now runs its service in 15 markets, including Los Angeles, San Francisco and San Diego in California; Austin, Dallas and Houston in Texas; and Miami, Orlando and Tampa in Florida. It is testing vehicles in London and Tokyo and plans to launch service in both cities.

Safety Scrutiny

The loan closes while federal safety regulators are examining how Waymo vehicles behave on the road. The National Highway Traffic Safety Administration has opened investigations into robotaxis illegally passing stopped school buses and into an incident in Santa Monica, California, in which a Waymo vehicle struck a child near a school at about 6 mph. The child suffered minor injuries, TechCrunch reported.

The National Transportation Safety Board has opened its own investigation into the school bus violations, which TechCrunch said were observed numerous times in at least two states.

What to Watch

Waymo has not said how much of the $5 billion will go to new vehicles, new cities or general corporate needs, so details on deployment, particularly the timing of the London and Tokyo launches, will show how quickly the money turns into service. The NHTSA and NTSB investigations remain open, and their findings could shape how fast the company is allowed to expand. Other autonomous vehicle developers that have relied on equity may also test whether lenders will extend similar credit to them.