Waymo, Alphabet’s autonomous driving subsidiary, is close to securing more than $3 billion in unrated debt from a trio of private credit lenders: Pacific Investment Management Co. (PIMCO), Blackstone and Sixth Street Partners. Goldman Sachs is advising on the deal, which would mark the robotaxi company’s first move into debt markets after years of relying exclusively on equity financing.

The expected pricing stands at more than 500 basis points above the benchmark rate, underscoring how costly this type of financing can be for a company that is still in expansion mode and not yet generating positive EBITDA.

From equity funding to debt financing

In February 2026, Waymo raised $16 billion in an equity round that valued the company at $126 billion post-money. Waymo currently operates paid robotaxi services in 14 US cities and has a fleet of more than 4,000 vehicles completing over 500,000 paid rides per week. The company is targeting 1 million weekly rides by year-end.

That expansion is taking place while Waymo remains negative EBITDA. The decision to pursue unrated debt appears intentional. Rated debt would require disclosures and credit agency scrutiny that Waymo may prefer to avoid at this stage. By turning to unrated private credit, the company gains flexibility, speed and fewer public obligations, but at a significantly higher cost. At more than 500 basis points over benchmark, the financing would be expensive and places the focus on how much runway the company wants to buy as it scales its operations.

Recent expansion

On September 1, 2026, Waymo launched paid services in Denver, San Diego and Tampa, bringing its total footprint to 14 cities. Its fleet has also passed the 4,000-vehicle mark. Reaching the 1 million weekly rides target would amount to roughly double its current volume.

Significance of the lenders involved

The participation of PIMCO, Blackstone and Sixth Street is notable. These firms are among the largest private credit players in the world, and their involvement suggests they have evaluated Waymo’s cash flows closely enough to take on the risk.

The move also shows how private credit is increasingly available to companies outside the traditional corporate bond market, including firms with strong equity backers but limited operating profits. For Waymo, that makes the financing structure a better fit than a public rated issue at this stage, even if the terms are more expensive.

The key uncertainty is whether Waymo’s path to profitability will take longer than the debt maturity period. A company that is still burning cash and paying more than 500 basis points above benchmark on $3 billion in debt will need to make meaningful progress toward positive unit economics.