Waymo robotaxis will now take passengers on freeways in three major U.S. cities, marking a major milestone for the driverless, ride-hailing company.

Alphabet-owned Waymo on Wednesday said it will begin offering those types of trips in the San Francisco, Phoenix and Los Angeles markets “when a freeway route is meaningfully faster.” The Google sister company will gradually extend freeway trips to more riders and locations over time.

Although Waymo’s driverless cars have previously taken passengers on smaller highways and side streets, Wednesday’s expansion marks the first time the company will take payment from public riders to go on freeways with higher speed limits.

“Freeway driving is one of those things that’s very easy to learn, but very hard to master when we’re talking about full autonomy without a human driver as a backup, and at scale,” Waymo co-CEO Dmitri Dolgov said at a press event ahead of the announcement. “It took time to do it properly.”

Waymo vehicles will generally travel up to a freeway’s maximum posted speed limit, which is 65 mph in many cases, the company said. However, a spokesperson confirmed, the robotaxis may sometimes go a few miles over the limit for safety purposes in extraordinary circumstances.

Freeway operations required expanded operational protocols, including coordination with safety officials at the California Highway Patrol and the Arizona Department of Public Safety, Waymo said. The company also installed additional infrastructure needed to charge its fleet of electric robotaxis given the freeway expansion.

Over the last year, Waymo has offered select Alphabet employees robotaxi freeway rides around San Francisco, Los Angeles and Phoenix in preparation for Wednesday’s launch, said Waymo Product Manager Jacopo Sannazzaro.

The company has been testing on freeways for more than a decade in total, he added. Besides testing on public roads and closed courses, Waymo also conducts testing in simulation to determine how its vehicles will respond to both typical and hard-to-replicate events, like merging onto freeways, lane-splitting motorcyclists or another car flipping over.

CNBC took a freeway test ride in a Waymo in the San Francisco Bay Area, from YouTube’s offices in San Bruno to San Mateo and back. The ride went on and off ramps along the California 101 seamlessly, with no incidents.

After already launching its robotaxi service in Austin, Texas, San Francisco, Phoenix and Los Angeles, Waymo has also announced plans to expand to Miami, San Diego and Washington, D.C., in 2026. The company is also testing its vehicles in New York City, Tokyo and plans to begin offering rides to the public in London next year.

Waymo on Wednesday also announced that it’s expanding its service footprint in the San Francisco Bay Area to San Jose. That includes rides to and from San Jose Mineta International Airport, marking the company’s second international airport destination. The SJC airport plans were first announced in September.

In 2023, Waymo launched at Phoenix Sky Harbor International Airport, which has become its most popular destination in the Phoenix metropolitan service area.

The company expanded its service in March to include an additional 27 square miles of coverage in the region, including cities like Mountain View and Palo Alto. After the Wednesday expansion, Waymo now offers service in about 260 square miles of Silicon Valley.

Would-be Waymo competitor Tesla also takes passengers to and from SJC. Customers can hail a ride via Tesla’s “Robotaxi” app, but that name is not precisely descriptive. Tesla only operates a car service with human drivers on board, not a commercial robotaxi service like Waymo’s, due to a mix of technical limits and permit requirements in California.

Advanced Micro Devices‘ CEO Lisa Su shut down concerns over Big Tech’s elevated spending during an interview with CNBC’s “Squawk Box” on Wednesday and said investing in more computing will accelerate the pace of innovation.

“I don’t think it’s a big gamble,” she said. “I think it’s the right gamble.”

Many of AMD’s hyperscaler customers over the last 12 months have beefed up spending as the technology reaches an “inflection point” and companies can see the return on that spending, Su added.

Su’s comments come as tech’s megacaps announced more than $380 billion in AI spending in their latest earnings reports as the firms race to build out infrastructure to support soaring demand.

On Tuesday, Su told analysts that AMD expects revenues to grow 35% per year over the next three to five years due to “insatiable” AI chip demand.

Shares were last up more than 7%.

Concerns of a potential AI bubble have jolted markets in recent sessions as Wall Street raises concerns that valuations have gotten too high.

Coinbase is following Tesla out of Delaware and into Texas.

Paul Grewal, Coinbase’s chief legal officer, wrote in a Wall Street Journal op-ed on Wednesday that the crypto exchange is moving its state of incorporation, a year after Elon Musk did the same with his electric vehicle maker. Musk also reincorporated his rocket maker SpaceX from Delaware to Texas.

“Delaware’s legal framework once provided companies with consistency. But no more,” Grawal wrote, pointing to recent “unpredictable outcomes” in the Delaware Chancery Court.

A handful of notable names, including Dropbox, TripAdvisor and venture firm Andreessen Horowitz have announced departures from Delaware. It’s a move that was championed by Musk following a Delaware Chancery Court ruling that ordered Tesla to rescind the CEO’s 2018 pay package, worth about $56 billion in options.

“If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible,” Musk wrote in a post on X in February 2024, when he filed to change SpaceX’s incorporation state.

Last week, Tesla shareholders voted to approve Musk’s more recent pay package, which could be worth up to $1 trillion.

Delaware has long been the dominant state for U.S. companies to incorporate due to its flexible corporate code and expert judiciary, and is seen as balancing the rights of executives and shareholders. A Texas state law allows corporations to limit shareholder lawsuits against insiders for breach of fiduciary duty. 

Coinbase and Andreessen Horowitz, an early backer, currently face a lawsuit in Delaware concerning the sale of shares in the crypto company tied to its public listing in 2021.

Like Musk, Coinbase CEO Brian Armstrong was a major contributor to President Donald Trump’s 2024 campaign for the White House.

— CNBC’s Lora Kolodny contributed to this report.

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