Waymo takes $5 billion loan to fund robotaxi expansion

Waymo has closed a $5 billion term loan—its first debt financing—with PIMCO, Blackstone, and Sixth Street leading a group of lenders. A term loan is borrowed money that must be repaid with interest, unlike the equity funding Waymo has traditionally used, which gives investors an ownership stake. The Alphabet-controlled company says it will use the capital to expand its driverless ride service in existing U.S. cities and new markets abroad, after raising $16 billion in equity in February. The shift matters because a robotaxi network needs heavy spending on vehicles, technology, and daily operations; access to debt gives Waymo another way to finance that build-out as it tries to become a large operating business.