Waymo has announced a substantial $16 billion funding round to expand its robotaxi services across more US cities and internationally. Leading this investment is Dragoneer Investment Group, a firm recognized for backing tech companies poised to go public.

In a blog post, Waymo’s co-CEOs revealed that part of the funding will be allocated to acquiring additional vehicles, a strategic move to increase their fleet. This expansion is essential as the company plans to launch operations in at least 20 new cities by 2026. Currently, Waymo operates over 2,500 robotaxis in six US cities, with the latest investment valuing the company at $126 billion.

This funding round has attracted a host of new investors, including Dragoneer, Sequoia Capital, and DST Global. Previous investors, such as Andreessen Horowitz, the Abu Dhabi sovereign fund Mubadala, Fidelity Management and Research Company, Perry Creek Capital, Silver Lake, Tiger Global, Temasek, and T. Rowe Price, have also participated. Back in 2024, Waymo secured $5.6 billion, which valued the company at $45 billion at that time.

While autonomous ride-hailing vehicles promise significant cost reductions by eliminating the need for drivers, they remain expensive to implement. Beyond acquiring vehicles, companies must equip each one with costly sensors and computing systems. Furthermore, robotaxis require remote monitoring during operations and additional management for tasks like EV charging, cleaning, and sensor calibration when they are not in service.

Nevertheless, Waymo is among the few companies offering a paid service with fully autonomous vehicles in the US. In contrast, Amazon’s Zoox is still conducting free rides in select cities, and Tesla continues to rely on in-vehicle safety monitors.