Waymo in Talks for $3 Billion Debt Raise with Major Credit Firms
Waymo, the autonomous driving company under Alphabet Inc., is reportedly negotiating a $3 billion debt raise with PIMCO, Sixth Street, and Blackstone. The deal could carry spreads over 500 basis points above benchmarks and may be finalized soon through Goldman Sachs as an advisor. This move marks a shift from Waymo’s traditional reliance on equity financing to accessing the credit markets—a strategy similar to Uber Technologies' in 2016 before its IPO. The debt raise aims to support Waymo's expansion, including scaling driverless fleets and managing rising AI costs. The company recently developed custom chips for improved robotaxi performance but faces a federal safety investigation after an incident involving one of its vehicles earlier this year. Despite the challenges, Waymo is on track toward delivering 1 million paid rides weekly across multiple cities by the end of the year.
Topics: Blackstone debt raise Goldman Sachs PIMCO Sixth Street Waymo