“Developing autonomous technology is capital-intensive, and raising outside funding helps companies cut costs and limit downside risk,” said Asad Hussain, mobility analyst at financial data company PitchBook. “Raising outside capital should free up Waymo’s team to redouble its focus on developing technology and not on reducing expenses.”
Some of that technology may be developed in the Middle East. With Mubadala, the global investment company based in the United Arab Emirates, aboard, Krafcik left open the possibility Waymo could conduct operations in that country.
Other investors included Alphabet itself, venture capital firm Andreessen Horowitz, global supplier Magna International and AutoNation. AutoNation invested $50 million, according to a regulatory filing.
“We’ve had some additional inbound interest and will be evaluating other future potential external investors as well,” Krafcik said.
Waymo did not disclose the valuation of the company. Investment bank Morgan Stanley estimated its value was $105 billion in September 2019. A year earlier, the company said Waymo was worth $175 billion. The cut came amid broader industry doubts about on the readiness of self-driving technology.
