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## Waymo’s Ambitious Drive: Is $16 Billion Enough?
Waymo, Alphabet’s vanguard in self-driving technology, has been on a tear, undeniably accelerating its operations over the last year and a half. With commercial robotaxi services now thriving across six major U.S. markets—from the sprawling San Francisco Bay Area to the bustling streets of Miami, Phoenix, Los Angeles, Austin, and Atlanta—its footprint is expanding rapidly. The company isn’t stopping there, eyeing an international leap with plans to deploy its driverless fleet in over a dozen new global cities this year, including iconic hubs like London and Tokyo.
This monumental expansion is backed by a staggering $16 billion in fresh capital. But here’s the burning question echoing through Silicon Valley and beyond: Is this colossal sum truly sufficient to conquer the autonomous frontier? Our conversations with industry veterans reveal a nuanced, often equivocal consensus: a hesitant “partially” or a cautious “it hinges on various factors.”
### The Bull Case: Unstoppable Momentum?
The optimists present a compelling case. Foremost among their arguments is Alphabet’s unwavering commitment. As Waymo’s principal and enduring investor, the tech giant provides a bedrock of financial stability, shielding it from the precarious fate of numerous AV startups that saw funding vanish when corporate backers—often traditional automakers—grew wary or shifted strategies. Furthermore, Waymo’s operational metrics are skyrocketing. Its ridership and the sheer volume of autonomous miles covered are experiencing explosive growth, a trend projected to continue unless disrupted by unforeseen regulatory hurdles. Consider this: Waymo facilitates a remarkable 400,000 rides weekly across its six U.S. markets, and in a single year (2025), it more than tripled its annual ride volume to an astonishing 15 million.
### Roadblocks Ahead: The Path to Profitability
However, even impressive growth doesn’t automatically translate into guaranteed success, particularly when the ultimate benchmark is profitability. Waymo faces formidable challenges. The inherent high costs of developing and deploying advanced autonomous technology remain a significant hurdle. Simultaneously, the company is under intensifying regulatory scrutiny, highlighted by its chief safety officer’s recent testimony before a Senate Commerce hearing. A strategic pivot also looms: should Waymo transition from being a direct operator to merely licensing its cutting-edge AV technology, it would necessitate relinquishing a degree of control – a difficult proposition for an emergent technology constantly under the microscope.
Moreover, and this point often sparks debate, Waymo lacks the integrated in-house manufacturing capabilities that give Tesla a distinct advantage. While Waymo collaborates with established automotive partners, these partnerships don’t afford the same financial leverage or the ability to aggressively scale down production costs that proprietary manufacturing allows. Do you see things differently? We invite your counterpoints and insights directly to kirsten.korosec@techcrunch.com.
## Whispers from the Industry: A Dark Tie to Mobility Funding
The shadowy investors backing the ill-fated EV startup Canoo remained an enigma for years, their identities surfacing only through the legal crucible of a lawsuit. Six years ago, a whisper reached my desk, urging me to investigate a specific figure: David Stern. Known for his ties to Prince Andrew, Stern otherwise existed as a phantom. Yet, his name resurfaced in my thoughts recently as the Department of Justice began declassifying documents related to Jeffrey Epstein. My initial speculation about his potential inclusion in the files quickly solidified into a startling revelation: Stern was not merely acquainted with the convicted sex offender, but a close business associate. He actively funneled global investment opportunities to Epstein, notably pitching him on stakes in ambitious mobility ventures like Faraday Future, Lucid Motors, and Canoo during the heady, free-flowing days of early EV funding. Delve deeper into my exposé on the disturbing nexus between Stern, Epstein, and the surprising entanglement of burgeoning mobility startups.
*— Sean O’Kane*
Have an exclusive insight or a hot lead? Reach out to Kirsten Korosec directly at kirsten.korosec@techcrunch.com (or via Signal at kkorosec.07) or connect with Sean O’Kane at sean.okane@techcrunch.com.
## Big Money Moves: Autonomous Tech Expands Beyond Robotaxis
The narrative around autonomous vehicle technology is rapidly evolving, extending far beyond the realm of consumer robotaxis. While a select few heavily-funded giants like Tesla, Waymo, and Zoox navigate the complex and expensive path of full-stack autonomy, a burgeoning ecosystem of startups is ingeniously repurposing advanced AV systems for a myriad of specialized applications. From rugged off-road defense to optimizing trucking logistics, forklifts, mining operations, and heavy construction, these founders are identifying lucrative niches. Investors, keen to capitalize on the next wave of automation, are swiftly redirecting capital into these less glamorous but highly practical sectors.
### Bedrock Robotics: Building the Future of Construction Autonomy
A stellar illustration of this trend is Bedrock Robotics. This Silicon Valley-based pioneer, spearheaded by seasoned alumni from Waymo and Segment, is engineering a sophisticated self-driving system specifically designed to be retrofitted onto existing construction equipment. The market’s enthusiasm is palpable: Bedrock just secured an impressive $270 million in Series B funding, co-led by powerhouses CapitalG and the Valor Atreides AI Fund. A diverse consortium of other notable investors joined the round, including Xora, 8VC, Eclipse, Emergence Capital, Perry Creek Capital, NVentures (Nvidia’s venture capital arm), Tishman Speyer, the Massachusetts Institute of Technology, Georgian, Incharge Capital, and C4 Ventures, among others.
### The Talent Magnet: Why Physical AI is Drawing Top Minds
Having amassed over $350 million in a remarkably short period since its 2024 inception, Bedrock’s fundraising pace, while not reaching the astronomical figures seen in pure AI lab seed rounds, unequivocally signals robust investment flowing into “physical AI” startups. We anticipate a surge in such deal flow. Critically, companies championing these practical applications of automated driving systems are poised to attract—and if they can afford them, retain—top-tier talent. Bedrock exemplifies this, having successfully recruited Vincent Gonguet, Meta’s former head of AI safety and alignment for all Llama models, as its new head of evaluation, alongside John Chu, a significant hire from Waymo. Stay tuned for an in-depth conversation with Bedrock Robotics co-founder and CEO, Boris Sofman.## Capital Chronicles: A Deep Dive into This Week’s Major Funding Rounds and Key Industry Developments
The past week has seen a flurry of activity across the tech and mobility sectors, with innovative companies securing substantial investments to fuel their growth and groundbreaking projects. From cutting-edge automation in aviation and underwater exploration to sustainable EV solutions and critical military tech, capital is flowing to disruptors. Let’s explore the standout deals and significant headlines that captured our attention.
### Significant Funding Milestones Driving Innovation
A diverse range of companies across multiple continents successfully closed impressive financing rounds, signaling strong investor confidence in the future of technology and sustainable solutions.
#### Additive Drives Powers Up Electric Motor Innovation
German electric motor pioneer **Additive Drives** garnered a notable €25 million ($29.5 million) investment. This significant capital injection, led by Nordic Alpha Partners, is set to propel their advancements in electric motor manufacturing, a crucial area for the future of various industries.
#### Apeiron Labs Navigates to a $9.5M Series A for Autonomous Underwater Exploration
The nascent field of autonomous underwater vehicles (AUVs) received a boost with **Apeiron Labs** closing a $9.5 million Series A round. This funding, spearheaded by Dyne Ventures, RA Capital Management Planetary Health, and S2G Investments, with additional participation from Assembly Ventures, Bay Bridge Ventures, and TFX Capital, will enable the startup to further develop its capabilities in oceanic exploration and data collection.
#### GoCab Fuels African Mobility Fintech with $45M Round
**GoCab**, an African mobility fintech startup, successfully completed a substantial $45 million financing round. This comprised $15 million in equity and an additional $30 million in debt. The equity segment was co-led by E3 Capital and Janngo Capital, drawing further investment from KawiSafi Ventures and Cur8 Capital, underscoring the growing potential of Africa’s digital economy.
#### Mitra EV Accelerates Commercial Fleets with $27M in Financing
Los Angeles-based **Mitra EV**, a commercial electric vehicle fleet company, secured $27 million in financing. This package included equity funding, with Ultra Capital as the lead investor, complemented by a credit facility from S2G Investments. The investment will support Mitra EV’s efforts to expand sustainable transport options for businesses.
#### Overland AI Secures $100M to Drive Military Autonomous Systems
In a powerful demonstration of investor confidence in defense technology, Seattle-based **Overland AI** raised an impressive $100 million. This round, led by 8VC, saw participation from a strong syndicate of investors including Point72 Ventures, Ascend Venture Capital, Shasta Ventures, Overmatch Ventures, Valor Equity Partners, and StepStone Group, as the company pushes the boundaries of self-driving systems for military operations.
#### Plug Plugs into $20M Series A for Used EV Marketplace
The burgeoning market for pre-owned electric vehicles saw **Plug**, a specialized marketplace, secure $20 million in Series A funding. Lightspeed spearheaded this round, with Galvanize and existing investors Autotech Ventures, Leap Forward Ventures, and Renn Global also contributing, highlighting the increasing demand for accessible EV options.
#### R3 Robotics Targets EV Disassembly Automation with €20M Boost
European startup **R3 Robotics**, focused on automating the complex disassembly of EV systems at scale, secured €20 million ($23.6 million) through a combination of grants and venture funding. Their €14 million ($16.5 million) Series A was co-led by HG Ventures and Suma Capital, with additional backing from Oetker Collection, the European Innovation Council Fund (EIC Fund), and existing shareholders like BONVENTURE, FlixFounders, and EIT Urban Mobility, signaling a commitment to circular economy principles in the EV sector.
#### Skyryse Soars Past $300M in Series C, Reaching Unicorn Status
El Segundo, California-based aviation automation trailblazer **Skyryse** announced a monumental Series C investment exceeding $300 million, propelling its valuation to an impressive $1.15 billion. This round, led by Autopilot Ventures, attracted a prestigious roster of investors including Fidelity Management & Research Company, ArrowMark Partners, Atreides Management LP, BAM Elevate, Baron Capital Group, Durable Capital Partners, Positive Sum, Qatar Investment Authority, RCM Private Markets Fund managed by Rokos Capital Management, and Woodline Partners, underscoring the transformative potential of their aviation technology.
### Industry Insights & Regulatory Shifts
Beyond the significant funding announcements, the week also brought forth crucial regulatory discussions and strategic corporate maneuvers that could reshape various segments of the mobility landscape.
#### China’s New Rule on Door Handles Sparks Global Attention
China’s Ministry of Industry and Information Technology has issued a ruling that could significantly impact vehicle design: all new cars sold in the country must feature mechanical releases on their door handles by January 1, 2027. This effectively bans the concealed electronically actuated door handles popularized by Tesla and other manufacturers. Speculation is now rife that European regulators may soon follow suit, signaling a potential global shift in automotive safety standards.
#### Uber’s Strategic Moves: New CFO and AV Ambitions
Ride-hailing giant **Uber** made a strategic leadership change, promoting Balaji Krishnamurthy, previously VP of strategic finance and investor relations, to Chief Financial Officer. This move is deeply intertwined with Uber’s ongoing autonomous vehicle strategy; Krishnamurthy is an active proponent of the company’s AV partnerships and holds a board seat at AV company Waabi. During Uber’s Q4 earnings call, he outlined the company’s commitment to AVs, detailing plans to invest capital in AV software partners, collaborate with AV makers through equity or offtake agreements, and support AV infrastructure partners.
#### Mixed Verdict for Uber in High-Profile Rider Safety Lawsuit
In a closely watched lawsuit, **Uber** received a mixed verdict regarding allegations of a woman being raped by her driver in November 2023. A jury determined Uber was liable as an “apparent agent” of the driver, awarding $8.5 million to the plaintiff. However, the jury rejected claims that Uber was liable for negligence or design defects and declined to award punitive damages. An Uber spokesperson stated that the “verdict affirms that Uber acted responsibly and has invested meaningfully in rider safety,” and confirmed plans to appeal the decision.
### Community Insights: The Future Name of Musk’s Mega-Company?
Last week, we engaged our community in a poll asking for their thoughts on the potential name or ticker for **Elon Musk**’s anticipated combined supercompany. The response was enthusiastic, with many creative, space-themed suggestions flowing in.
#### Poll Results Are In: “X” Dominates the Vote
The results are now in, and the clear favorite among our readers was “X.” Approximately 50% of participants voted for “X,” aligning with Musk’s frequent references to the “everything app.” Other notable choices included “ELON” (20.7%), “SpaceAI” (17.2%), and “K2” (12.1%), a nod to one of the corporate entities established in January.
#### The Blogger’s Perspective on “X”
From our perspective, the prevailing sentiment for “X” makes perfect sense given Musk’s public pronouncements. We believe it’s highly probable that “X” will indeed be the ultimate moniker, encompassing a broader ecosystem beyond just SpaceX and xAI.
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