Vinod Khosla Tells Google Forget About Search, Sun Microsystems Co-Founder Urges Tech Giant To Invest 'Tens Of Billions' In Self-Driving Before Others Catch Up

Vinod Khosla, the Sun Microsystems co-founder and early OpenAI backer, says Alphabet Inc. GOOGL GOOG is chasing the wrong race, urging Google to invest its money into Waymo.

What Happened: In a Sunday post on X, the venture capitalist urged Google's parent to pour "tens of billions" into Waymo before rivals close the gap, arguing robotaxis could eclipse the revenue engine that built Google's search empire.

Khosla's post came after entrepreneur Simon Kalouche shared YipitData estimates showing Waymo's gross bookings in San Francisco topped Lyft's in May and are on pace to pass Uber's within 12 months. The data highlights a steep adoption curve — bookings for Waymo One have nearly quadrupled since late 2023.

Waymo's growth isn't just a Bay Area quirk. The Alphabet unit now delivers roughly 250,000 paid rides each week across Phoenix, Los Angeles and San Francisco and recently celebrated 10 million lifetime trips, doubling that milestone in five months. Analysts also caution that Lyft's recent booking growth could be capped by Waymo's expansion, even as Lyft touts double-digit gains.

Why It Matters: Alphabet's core search business still throws off colossal cash — Google Search generated about $50.7 billion in revenue last quarter alone, according to the company's filings. Yet the company is spending heavily to defend that cash cow against AI-powered challengers.

The company’s CEO, Sundar Pichai, recently admitted in an interview that overall Google Search activity is still growing, despite claims from Apple’s Eddy Cue that Safari had experienced a decline in search volumes.

At its developer conference, Google rolled out a new “AI mode” in its Search and Chrome browser for all U.S. users. The feature provides a conversational, Q&A-style experience, resembling ChatGPT and replacing the conventional list of search result links.

According to Benzinga Edge Stock Rankings, Alphabet has received a growth score of 88.54%. Click here to see how it stacks up against the likes of Apple.