Waymo announced a $16 billion investment round aimed at bringing its robotaxi business to more US cities, as well as some overseas markets. The funding round was led by Dragoneer Investment Group, a “crossover” firm known for investing in late-stage tech companies before they go public.

Waymo’s co-CEOs said in a blog post they would use some of the money to buy more vehicles to grow its fleets size, a crucial step as it seeks to launch in at least 20 new cities in 2026. The company currently operates more than 2,500 robotaxis in six US cities. The new funding values Waymo at $126 billion.

Waymo’s latest funding round attracted several new investors, including Dragoneer, Sequoia Capital, and DST Global. Returning investors include Andreessen Horowitz, Abu Dhabi sovereign fund Mubadala, Fidelity Management and Research Company, Perry Creek Capital, Silver Lake, Tiger Global, Temasek, and T. Rowe Price. The company last raised a $5.6 billion in 2024, valuing the company at $45 billion.

Despite their promise to bring down costs by eliminating driver jobs, autonomous ridehail vehicles are enormously expensive. In addition to vehicle purchases, companies must install expensive sensors and computers into each vehicle. The robotaxis need to be monitored by remote operators during trips. And fleet managers handle EV charging, cleaning, and sensor calibration while the robotaxis are offline.

Still, Waymo is one of the few companies to run a paid service with fully driverless vehicles in the US. Amazon’s Zoox is still running free trips in a handful of cities, while Tesla has yet to transition away from using safety monitors in the vehicle.