Alphabet’s Waymo Raises $ 2.5 Billion in New Investment Round

Google’s sister company Waymo announced on Wednesday a $ 2.5 billion investment round, which will go toward advancing its autonomous driving technology and growing its team.

The funding round follows the departure of Waymo CEO John Krafcik in April and criticism that the company is moving slower than expected toward commercializing its technology. Waymo and other freelance companies have found adoption to be more difficult than expected. The company, for example, still relied heavily on human safety drivers last summer.

Waymo is one of Alphabet’s “Other Bets” that continues to lose money and recent funding shows that the company is increasingly relying on other investors to help support the unit.

Waymo has already deployed its autonomous vehicles in Phoenix as a transportation service. The company’s delivery unit, Waymo Via, is also working with freight partners and delivery customers such as UPS to transport goods.

Waymo previously raised $ 2.25 billion in its first round of external funding last year. Prior to that, Alphabet supported the business itself, as it does the rest of its “Other Bets,” but the funding measure showed Waymo was looking for even more capital.

Waymo says it eventually wants people to be able to own and operate vehicles using its autonomous driving technology. The company said it has so far traveled tens of millions of miles on public roads in 25 cities across the United States.

The latest round includes funds from Alphabet, Waymo’s parent company, Andreessen Horowitz, AutoNation, Canada Pension Plan Investment Board, Fidelity Management & Research Company, Magna International, Mubadala Investment Company, Perry Creek Capital, Silver Lake, funds and accounts advised by T. Rowe Price Associates, Inc., Temasek and Tiger Global.

CNBC’s Phil LeBeau contributed to this report.

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