Google Aiming to Lead Autonomous Driving... "7 Trillion Won Additional Investment in Waymo"

Alphabet's autonomous driving subsidiary 'Waymo'
Competitor GM indefinitely delays 'Origin' production
Tesla also postpones robotaxi to October

Google's parent company Alphabet announced on the 23rd (local time) that it plans to invest an additional $5 billion (approximately 7 trillion KRW) over several years in its autonomous driving subsidiary, Waymo.

Ruth Porat, Alphabet's Chief Financial Officer (CFO), stated during a conference call following the Q2 earnings report, "With this new funding, Waymo will be able to continue building a world-leading autonomous driving company," announcing the investment plan. She added that detailed information would be available in the quarterly report to be submitted to the U.S. Securities and Exchange Commission (SEC) on the 24th.

[Image source=Reuters Yonhap News]

According to CNBC, Waymo raised $2.25 billion in its first funding round in 2020, followed by an additional $2.5 billion in 2021. At that time, investors included venture capital heavyweight Andreessen Horowitz, automotive specialty retailer AutoNation, and the Canada Pension Plan Investment Board (CPPIB).

Waymo is currently expanding its robotaxi operations across San Francisco and Phoenix, as well as parts of Los Angeles and Austin, Texas. Sundar Pichai, Alphabet's Chief Executive Officer (CEO), explained that Waymo currently provides over 50,000 paid rides per week, primarily centered around San Francisco and Phoenix. The cumulative number of rides provided to date has reached 2 million.

Alphabet's announcement of increased investment in Waymo comes amid recent moves by competitors to halt production or delay the launch of autonomous vehicles. Cruise, General Motors (GM)'s autonomous driving subsidiary in the U.S., announced on the same day an indefinite postponement of production for its urban autonomous shuttle, Origin. Previously, Cruise had received operating permission in San Francisco last year but suspended operations following a series of accidents. Tesla also postponed its originally scheduled unmanned robotaxi unveiling from next month to October.

Meanwhile, Alphabet's Q2 revenue and earnings per share were $84.74 billion and $1.89, respectively, surpassing Wall Street estimates ($84.19 billion and $1.84). Alphabet's Other Bets segment, which includes Waymo, recorded revenue of $365 million, up from $285 million in the same period last year, but losses widened from $813 million to $1.13 billion during the same period. On the New York Stock Exchange that day, Alphabet's stock closed at $183.60, up 0.14% from the previous session.