Alphabet announced plans to invest USD 5 billion in its autonomous vehicle development unit in a multi-year financing deal. The investment aims to enable Waymo to continue expanding its operations.

The company intends to use the funds to develop its self-driving technology further and enhance operations.

Alphabet also noted that Waymo is currently providing over 50,000 paid rides per week, primarily in San Francisco and Phoenix, and has completed 2 million trips to date.

Analyst QuickTake : Waymo has made notable progress in its autonomous driving efforts. Recently, the company expanded its driverless ride-hailing service to Los Angeles and Austin while opening up rides in San Francisco to all users without a waitlist. On a separate note, we observed that automakers, including General Motors and Hyundai, are significantly investing in their respective autonomous vehicle technology development units, Cruise and Motional. This trend is a positive indicator for the autonomous vehicle industry as it underscores efforts to deploy and commercialize the technology on a larger scale.