Google Steers $5 Billion into Waymo as GM Hits the Brakes on Autonomy

While companies are pulling the plug on their self-driving car dreams left and right… in the midst of their stock plummeting from their outrageous AI spending, Alphabet Inc. is betting big on robotaxis. How big? Try a cool $5 billion investment into Waymo, their self-driving car division.

Now, self-driving cars have been the tech world's equivalent of the Loch Ness Monster—lots of people claim to have seen it, but no one’s really sure it exists.

We're currently stuck somewhere between "fully autonomous" and "just enough autonomy to let you scroll through Instagram at stoplights." Companies like Tesla have been promising us futuristic, driverless dreams for years and while I do believe in the longterm vision companies often end up delivering something more like glorified cruise control.

On the other hand, some car manufacturers are taking baby steps in their robotaxi quest, happy to offer partial autonomy for now and leave the heavy lifting to Elon. Waymo, Cruise, Motional, and Zoox (Amazon)  are leading this charge, each with their own set of hurdles. From dodging pedestrians like a game of Frogger to keeping their cash flow steady, these companies have seen it all. For instance, GM's Cruise recently announced it’s hitting the brakes on its much-hyped Origin EV. Meanwhile, Waymo is stepping on the gas, thanks to Alphabet’s latest $5 billion endorsement.

Alphabet’s CFO Ruth Porat recently gave us all the deets on a quarterly earnings call, highlighting Google’s commitment to Waymo’s mission of world-leading self-driving technology. This fresh funding is set to expand Waymo’s robotaxi service in places like the San Francisco Bay Area, Los Angeles, and Austin, Texas.

(Source: Reuters)

While Alphabet is busy fueling Waymo’s ambitions, GM’s Cruise is licking its wounds. The former CEO of Cruise, Kyle Vogt, even took to X to vent his frustrations, comparing GM’s decisions to the Atlanta Falcons blowing their 28-3 lead to the Patriots during the Super Bowl.

“Disappointed to see GM kill the Origin. Would have been amazing for cities. GM repeatedly finds themselves with a 5-10 year head start, but then fumbles the ball, shuts things down, and loses the lead. Anyone remember the EV1?”

Waymo's co-CEO, Tekedra Mawakana, also chimed in on X, expressing gratitude for Alphabet’s confidence and enthusiasm. Waymo already boasts over 600 robotaxis zipping around Phoenix, Los Angeles, and San Francisco, with plans to grow that number as expansions kick into high gear in Austin.

It’s pretty obvious that Google’s CEO isn’t afraid to splurge. First, there was their AI addiction, which had investors fleeing like husbands dodging credit card bills after their spouse’s shopping spree. Now, they’ve thrown an extra $5 billion into Waymo, because why not? As the saying goes, scared money doesn’t make money. At the time of this writing, Google’s stock is still down nearly 4.5%.

Stock.News has positions in Google, Amazon, and Tesla.