Waymo May Raise Outside Capital for the First Time at a Valuation ‘at Least Several Times’ that of Cruise
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In a move that could have significant implications for the self-driving vehicle industry, Alphabet’s Waymo may raise outside capital for the first time at a valuation "at least several times" that of Cruise, the General Motors-owned autonomous vehicle business worth nearly $15 billion. According to a report published by The Information on Monday, this development would be a major milestone for Waymo, which has been a cash-intensive unit.
Waymo’s 10-Year Anniversary and Valuation
Waymo is currently celebrating its 10-year anniversary, having first launched in 2016 as "Project Chauffeur." Over the years, the company has undergone significant growth and development, with analysts estimating that it could surpass a valuation of $175 billion based on future revenue estimates. For context, a valuation north of $100 billion would put Waymo significantly ahead of Uber, Tesla, GM, and Ford.
Ruth Porat’s Encouragement
According to The Information’s reporting, Waymo’s chief financial officer, Ruth Porat, has encouraged the company to raise capital from outside investors. This move would help limit costs and allow Alphabet to display Waymo’s valuation for the first time in several years. However, it is worth noting that Alphabet does not want to relinquish too much equity in the business.
Cruise and the Rise of Self-Driving Vehicles
For its part, Cruise has similarly sought outside capital since being acquired by GM in 2016 for $581 million. In mid-2018, The Vision Fund invested $2.25 billion in Cruise, giving SoftBank a nearly 20% stake in GM’s self-driving business. This investment highlights the growing interest in the self-driving vehicle industry and the potential for significant returns on investment.
Waymo’s Commercial Robotaxi Service
Last year, Waymo launched its commercial robotaxi service, Waymo One, in the Phoenix area. This move marked a major milestone for the company and demonstrated its ability to generate revenue. More recently, Waymo announced that it would sell its custom light detection and ranging sensors (LiDAR) to companies outside the self-driving car industry, further emphasizing its commitment to profitability.
Estimates of Waymo’s Revenue in 2030
According to estimates, Waymo could book $114 billion in revenue by 2030. This figure underscores the significant potential for growth in the self-driving vehicle industry and the potential returns on investment for companies like Waymo.
Waymo CTO on the Company’s Past, Present, and Future
In an interview with TechCrunch, Waymo’s chief technology officer, Dmitri Dolgov, discussed the company’s past, present, and future. He highlighted the importance of innovation and the need to continuously push the boundaries of what is possible in the self-driving vehicle industry.
Conclusion
The potential for Waymo to raise outside capital at a valuation "at least several times" that of Cruise would be a significant development for the self-driving vehicle industry. With analysts estimating that Waymo could surpass a valuation of $175 billion, this move would demonstrate the company’s commitment to growth and its ability to generate revenue.
Timeline of Key Events
- 2016: Waymo launches as "Project Chauffeur" and is acquired by Alphabet.
- 2018: The Vision Fund invests $2.25 billion in Cruise, giving SoftBank a nearly 20% stake in GM’s self-driving business.
- 2020: Waymo launches its commercial robotaxi service, Waymo One, in the Phoenix area.
- 2023: Waymo announces that it will sell its custom LiDAR to companies outside the self-driving car industry.
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