Waymo Nears $3 Billion Debt Deal With Pimco, Blackstone, Bloomberg Reports

Alphabet's self-driving technology unit, Waymo, is in the final stages of negotiations to raise more than $3 billion in its first-ever debt financing, according to a Bloomberg News report citing people familiar with the matter. The move signals a strategic shift to debt markets as the company seeks to fund its capital-intensive expansion.

Key Lenders and Deal Structure

Waymo is reportedly working with Goldman Sachs to finalize the deal, which could be completed in the coming days. The sources cited by Bloomberg indicated that the terms are not yet final and could still change.

Key details of the proposed financing include:

• Lenders: A consortium of major investment firms including Pacific Investment Management Co. (Pimco), Blackstone, and Sixth Street Partners are said to be involved.
• Debt Type: The debt would be unrated, which typically means it will offer a higher yield to compensate investors for the increased risk.
• Pricing: The interest rate could be priced at more than 500 basis points over the relevant benchmark rate, reflecting its unrated status.

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According to the original report, Blackstone, Pimco, and Sixth Street Partners declined to comment. Waymo and Goldman Sachs did not immediately respond to a request for comment from Reuters.

Strategy and Market Context

The turn to debt financing comes as Waymo faces significant costs associated with scaling its driverless vehicle fleet and advancing its artificial intelligence systems. This capital infusion is intended to fuel the company's growth as competition in the autonomous vehicle sector intensifies.

Waymo is a key player in the nascent robotaxi industry, competing directly with rivals like Amazon's Zoox and Tesla's self-driving vehicle program. Securing substantial funding is critical for maintaining a competitive edge in a market that requires massive, long-term investment in technology, hardware, and operational expansion before achieving widespread profitability.