Waymo closes $5 billion loan, its first debt deal, to expand robotaxi service

Waymo, the self-driving car company owned by Alphabet, closed a $5 billion term loan on Thursday, October 8, 2026, the first time it has borrowed money rather than raising equity. The company said it will use the funds to expand its fully autonomous ride-hailing service across the United States and in other countries. PIMCO, Blackstone and Sixth Street led the group of lenders, with Capital Group, Loomis Sayles and T. Rowe Price also lending significant amounts, and Goldman Sachs acting as sole lead bookrunner. Talks began in early September with a target of more than $3 billion, and the deal grew to $5 billion as demand from lenders built up.

Most young technology companies fund themselves by selling shares, because lenders want steady cash flows before they lend. A company that can borrow billions is one that lenders believe has a real, growing business. Waymo's ability to raise $5 billion in debt, and to increase the deal size along the way, signals that big credit investors now see robotaxis as a business that can earn enough to repay loans, not only a long-term research bet.

Debt is also cheaper for existing owners than issuing more shares, because it does not dilute their stakes. For Alphabet, which remains Waymo's majority owner, that matters: Waymo can keep expanding without the parent having to put in more money or give away more of the company. The trade-off is interest cost; the reported pricing, more than five percentage points over the benchmark, reflects the risks lenders still see in a young and capital-hungry business.

The money will go into building out the service: buying and equipping vehicles, opening in new cities, and maintaining depots and operations. Robotaxi services need a lot of capital before they earn back their costs, so access to both equity and debt gives Waymo more room to grow faster than rivals.

For India's technology and auto industries, the deal shows how capital markets are starting to treat autonomous driving as an infrastructure-like business. It is a signal worth watching for Indian firms working on driver-assistance software, mapping and electric vehicle fleets, which may one day seek similar financing.

Short-term: Waymo has fresh capital to add vehicles and launch in more cities, in the US and abroad, without raising new equity.

Long-term: If the robotaxi business grows as planned, more self-driving and mobility companies could turn to debt markets, lowering their cost of funding; if it stalls, the loan becomes a burden that must still be serviced.

Who is affected: Riders in cities where Waymo operates or plans to launch, competing robotaxi and ride-hailing firms, Alphabet shareholders, and the lenders who now carry Waymo credit risk.

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