Alphabet’s Waymo accepts outside money as it raises $2.25 billion
Until now, Waymo (formerly the Google self-driving car project) has been a wholly owned subsidiary of Google parent company Alphabet. While the company enjoyed a limited amount of autonomy, CEO John Krafcik still ultimately reported to Alphabet brass. Waymo has never published its own financial results, but it's widely believed that Alphabet has absorbed billions of dollars of losses as Waymo has refined its technology.
Now Alphabet won't have to bear the financial burden alone. Waymo says that for the first time it has raised funding from outside investors. The total fundraising round is $2.25 billion-though some of that money is coming from parent company Alphabet. Other investors include Silver Lake, Andreessen Horowitz, and the Canada Pension Plan Investment Board.
Waymo is following in the footsteps of two of its biggest rivals-GM's Cruise and Ford's Argo. Cruise has raised more than $3 billion in three rounds from Softbank, T. Rowe Price, Honda, and parent company GM. The Honda investment has helped cement an alliance that could lead to Honda adopting Cruise's self-driving technology for its own vehicles.
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