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Waymo, Alphabet's autonomous driving division, is looking for outside investors, reports The Information.
The company apparently targets Volkswagen and other European manufacturers.
Waymo and Volkswagen did not immediately respond to Business Insider's requests for comments.
Read more: G M Cruise plans to double its size by the end of 2019 and has hired a new executive to help it grow
Alphabet is looking for a Waymo valuation that is well over $ 15 billion and probably will not offer a stake of 20% or more to outside investors, says The Information.
Alphabet spends at least $ 1 billion a year on Waymo, according to The Information, which quotes former Waymo employees and leaders of other companies. Waymo's annual cost is not financially prohibitive for Alphabet, but Alphabet's chief financial officer, Ruth Porat, reportedly encouraged the company's subsidiaries to reduce costs and become more efficient. Other Waymo units, such as Verily and Makani, have received investments from external companies.
In 2018, Waymo launched a standalone phone service in parts of Arizona, accessible to a limited number of users. The company recently announced that it would sell LIDAR sensors to companies that would not use them for standalone competitive services.
If Waymo reaches an agreement with an external investor, it will join competitors such as Argo AI and Cruise, who have each taken investments from major automakers in recent years. Volkswagen has recently reached an agreement to invest in Argo AI, which counts for Ford among the majority shareholders, according to The Information.
Volkswagen would take about half of Ford's investments. Cruise, owned by General Motors, received a $ 750 million Honda investment in 2018.
Outside investments could eventually cause Waymo to separate from Alphabet and become an independent company.
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