Waymo Accepts Outside Investment and Alphabet Launches New Moonshot

On Monday, Google's parent company revealed a new "moonshot" and its most famous Other Bet inched closer to corporate adulthood.

Going fishing

Alphabet's X division announced Tidal, "a moonshot to protect the ocean and feed humanity sustainably." To achieve those goals, Tidal thinks humanity needs to 1) have a better understanding of what's happening underwater and 2) improve fish farm operations.

Just one problem: Ask Leonardo DiCaprio...the ocean isn't the most hospitable place. It's dark and cold. Briny ocean water is unforgiving to electronics. And GPS and wi-fi don't work underwater.

Stage 1 of Tidal's project happened in stealth. For three years, it's been working with European and Asian fish farmers to develop underwater cameras, machine learning tools, and a recognition system for improving feeding and waste management. Here it is in action:

Back above deck

A phalanx of VC, private equity, sovereign wealth fund, and pension fund investors led a $2.3 billion fundraising round for Waymo. It's the first time Alphabet's self-driving arm has taken in outside investment, though we still don't know its valuation.

• Waymo had reportedly been looking for external financing as far back as March 2019, per The Information.
• CEO John Krafcik said a spinoff has “always been on the road map.”

The company runs a self-driving taxi service, Waymo One, which boasts over 1,500 monthly users in suburban Phoenix. Waymo also officially named its goods delivery service: Via.

Back at HQ

When Google's cofounders stepped down from management in December, company watchers wondered if now-Alphabet CEO Sundar Pichai and CFO Ruth Porat would rein in the "Other Bets,” experimental research projects ranging from the life sciences to internet-beaming balloons.

• In January, Pichai told Fortune most of the individual Bets would likely seek external investment.
• In Waymo's case, that investment shows Alphabet is relinquishing some control to defray climbing costs.

Bottom line: Tidal is starting small and hoping to scale into wider ocean monitoring and other applications, like endangered species tracking. But 11-year-old Waymo, which hinted it's looking for more outside investment, is inching toward independence.