Waymo upsizes its first debt deal to $5 billion to fund global expansion

Expansion Plans

Waymo has historically funded itself with equity, but the new debt deal allows the company to raise capital without diluting existing equity holders. The operating numbers explain why Waymo needs so much cash, with the company currently running over 500,000 paid rides per week across 14-15 US cities.

International Roadmap

The international roadmap adds to the bill, with Waymo planning launches in London, Tokyo, and Munich, with testing or groundwork already underway. The company's target is 1 million weekly rides across 20 cities worldwide by the end of 2026, with Munich targeted for late 2027 and would be Waymo's first market in the European Union.

Private Credit Industry Win

For the private credit industry, the deal is a notable win. PIMCO, Blackstone, and Sixth Street lending billions to an autonomous driving company shows that large non-bank lenders are willing to finance capital-heavy tech businesses, even without a credit rating attached.

Compute Expenses

Waymo also explicitly tied part of this raise to rising compute expenses, a reminder that the cost of running advanced AI systems is becoming a line item large enough to justify its own financing.

Watchlist

There are several things to watch from here. The first is whether Waymo hits its end-of-2026 target of 1 million weekly rides. The second is the international rollout in London, Tokyo, and Munich. The third is whether this becomes a habit, given the strong demand behind this $5 billion raise.