Waymo, the autonomous vehicle technology developer formed by internet and technology group Alphabet, is looking to raise outside money for the first time, The Information reported on Monday.
The unit has reportedly been valued at roughly $15bn but Alphabet will seek a substantially higher valuation in any round, and the prospective investors include automotive manufacturer Volkswagen, a person with direct knowledge of the situation told The Information.
Established as a formal subsidiary in 2016 after years of internal development, Waymo is developing a self-driving car and attendant software, and has been trialling its vehicles on public roads since 2009.
Waymo’s first commercial offering, an autonomous ride hailing service, began being piloted in the city of Phoenix in December 2018, and it has indicated it may license its lidar object detection technology to other companies.
However, the division is currently costing Alphabet at least $1bn a year to maintain, according to former executives cited by The Information, and it is yet to release a widely available product. The potential move is being supported by Alphabet’s CFO, Ruth Porat.
Waymo’s securing of external investment would follow similar moves by Alphabet units such as life sciences technology developer Verily and augmented reality game producer Niantic.
Photo courtesy of Waymo LLC.
