Waymo’s backers valued it at $126 billion. The Alphabet division that houses it brought in $372 million last quarter—and lost $2.05 billion

Alphabet lost $482 billion in market value, marking its worst day since going public in 2004. The robotaxi business, managed by Other Bets, only accounted for $372 million in Q3 revenue, a 0.29% contribution to Alphabet's $127.6 billion in sales. The majority of Alphabet's revenue came from Google Services, including Search, advertising, subscriptions, and YouTube, which generated $96.3 billion.

Google Cloud contributed $30.7 billion, a significant increase from the previous year. Alphabet's operating income rose by 30% to $40.6 billion, with an operating margin of 31.8%. Despite these gains, Alphabet's spending commitments are growing rapidly. Capital expenditures hit $51.4 billion in Q3, nearly doubling from $24 billion in the same period last year.

This increased investment is primarily directed at technical infrastructure supporting Alphabet's AI ambitions, such as servers, networking equipment, and data centers. In response to the market downturn, Alphabet is seeking additional funding. In February, it announced a $16 billion funding round that valued Waymo at $126 billion, with plans to expand to over 20 cities by 2026, including international markets like London and Tokyo.

Waymo has provided over 400,000 rides per week across six major U.S. metropolitan areas. To support its expansion, Waymo closed a $5 billion term loan in October, its first debt financing, from investors like PIMCO, Blackstone, and Sixth Street.