Waymo has increased the size of its first debt financing to $5bn as the autonomous driving company turns to private credit to support the expansion of its robotaxi operations, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as highlighting that Pacific Investment Management Co, Blackstone, and Sixth Street Partners were among the investors participating in the private loan. The financing was priced at 5.25 percentage points above the benchmark rate.
Waymo had initially been seeking to raise more than $3bn in its debut debt offering. The loan has now been allocated and is expected to close shortly, with Goldman Sachs arranging the transaction.
The financing provides Waymo with another source of capital as it scales its fleet and absorbs the substantial costs associated with artificial intelligence and autonomous driving technology.
The Alphabet-owned company is expanding its paid robotaxi service into additional US markets, including Las Vegas and Detroit, while also preparing for international expansion. Waymo plans to launch services in Japan and Singapore as it seeks to build a global autonomous transportation network.
The company has set a target of reaching one million paid weekly rides during 2026, adding to the capital requirements associated with vehicle production, technology development and fleet deployment.
Waymo has historically relied heavily on equity financing to fund its expansion. Earlier this year, the company raised $16bn at a valuation of $126bn, providing substantial funding for its push to scale robotaxi operations.
