Earlier quoted context omitted.
Waymo is talking about scaling up operations globally and the market is competitive, the cost 100% does matter. They need large Chinese production lines for lidar, integration kits for cars plus the in car computing, repair pipelines for both sensors and cars, real estate to park cars, the infrastructure/processes to clean and charge them quickly, teams of remote drivers, insurance policies, etc. Then they need to co…
Google is capable of burning truly huge amounts of money on projects that look exciting and have long term prospects (e.g Youtube). They could lose $10-20 billion a year on Waymo for a decade if needed. You can't just cancel Sergey's favourite pet project, regardless of economics.
Waymo also took $11B from outside investors, so it's just not Alphabet taking the risk