Alphabet’s Sidewalk Labs Offshoot Is Now a Unicorn

Projects to build highways for self-driving vehicles and smart grid applications are well underway. 

Sidewalk Labs headquarters near the proposed site of 'Quayside' in Toronto, Ontario, Canada, in 2020. 

Photographer: Cole Burston/Bloomberg
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After Alphabet Inc. shelved plans to build its own city and wound down the company in charge of the project, a group of former employees is carrying on its legacy. Their startup, Sidewalk Infrastructure Partners LLC, is pursuing ambitious infrastructure projects, including the construction of specialized roads for self-driving cars, a sprawling smart grid project and the implementation of technology to help cities build 5G wireless networks.

On Wednesday, the company plans to announce it raised $400 million from StepStone Group Inc., a private-market investment firm whose focuses include infrastructure. The deal values the business, known as SIP, at $1.25 billion, said a person familiar with the terms who asked not to be identified because they’re private.