Waymo Recall Under NHTSA Scrutiny as Alphabet Presses Ahead With $32 Billion Infrastructure Push

Federal safety regulators are taking a second look at whether Waymo's fix for a school-bus braking problem actually works. The NHTSA opened an investigation yesterday into the effectiveness of the recall remedy covering nearly 3,000 vehicles, examining whether the software update adequately prevents the robotaxis from passing stopped school buses.

What makes the query pointed: according to the agency, most of the reported incidents occurred after Waymo says it had already deployed the remedy. The probe therefore centers on whether the patch resolved the behavior flagged in the original recall — a recall query in which the regulator checks whether the corrective action truly eliminated the reported defect. Waymo told Reuters it has not received any related citations since March.

A Senate Letter and a Lawsuit Add to the Pressure

The regulatory attention at Waymo is only one front. Senator Ed Markey has asked Alphabet chief executive Sundar Pichai to let schools switch off Google's AI services while keeping search access intact, setting a deadline of November 30, 2026, for a company response. At issue is the way the two offerings are bundled for schools: per an Associated Press report, administrators must enable access to Google's AI tools and Search together for student accounts. Educators and parents have criticized that linkage, and Markey wants schools to be able to opt out of the AI services without surrendering search.

Separately, a North Carolina family has sued Google, alleging that Gemini contributed to their daughter's mental health crisis; Reuters reported the claim on November 5. The girl used the service on a school-issued Chromebook. The allegations have not been established in court.

Google Keeps Writing Checks

None of that has slowed Alphabet's infrastructure ambitions. Google said on November 4 that it plans to invest US$15 billion in Malaysia, directed at digital infrastructure and related initiatives. Two days later came word of a planned $17 billion outlay for the company's first data center in Wyoming, with Tallgrass Energy, Black Hills Energy, American Electric Power and Related Digital named as partners. On Friday, Google acquired a data center site in southeastern Wyoming from Crusoe, according to the company; financial terms were not disclosed.

The spending plans ride on strong growth. Alphabet reported third-quarter 2026 revenue of $127.6 billion on October 28, up 25%. Google Search & other grew 12%, and management has signaled that capital expenditures will rise significantly in 2027.

Investors took the mix in stride. Alphabet shares gained 1.0% today, with the broader US market recovery yesterday supported by lower oil prices, according to the Associated Press.