Alphabet’s “other bets” segment needs work. Waymo, Alphabet’s autonomous-driving asset, aims to raise $16 billion in a round valuing the robotaxi business at nearly $110 billion. Investors include Sequoia Capital, DST Global, and Dragoneer Investment Group. Alphabet stock traded around $338, with a market cap of $2.94 trillion.

Waymo did not confirm fundraising details but highlighted the scale of the endeavor. Third-party investors are willing to pay over $100 billion for Waymo. The business operates more than 2,500 cars in the U.S., offering paid robotaxi service without a driver, setting it apart from competitors.

Alphabet’s estimated $13 billion investment in Waymo is supported by its cash reserves of $98.496 billion. This investment represents around 13% of Alphabet’s cash pile and less than 0.5% of its market valuation. The fundraising round in October 2024 valued Waymo at over $45 billion, now at $110 billion.

Alphabet’s Q3 2025 earnings show revenue of $102.3B, operating income of $31.2B, net income of $35.0B, and EPS of $2.87. The company plans capex of $91-93 billion for 2025. Alphabet can afford to finance Waymo and continue investing in AI infrastructure.

Waymo offers active rider service in major U.S. cities. The biggest risk for Alphabet is reputational, with any accident leading to negative headlines. Regulatory scrutiny and safety concerns may impact growth. Investors must weigh the potential value of Waymo against these risks.

The latest fundraising round positions Waymo as an established company, not a speculative venture. If Waymo continues to expand services and markets, Wall Street will have to consider its value in Alphabet stock prices. The scenario is no longer about Alphabet’s worth but how much is already factored into its price.

Read more at Yahoo Finance: Alphabet’s quiet $110B Waymo move blows up ‘other bets’ narrative