The settlement amount will be paid in the form of shares of the still privately-held Uber. As part of the settlement, Uber also agreed not to use any trade secrets obtained from Waymo in its own autonomous vehicles.
"To our friends at Alphabet: we are partners, you are an important investor in Uber, and we share a deep belief in the power of technology to change people's lives for the better. Of course, we are also competitors. And while we won't agree on everything going forward, we agree that Uber's acquisition of Otto could and should have been handled differently," Uber CEO Dara Khosrowshahi said in a statement.
The case centered around former Google and Uber employee Anthony Levandowski, who worked for Google from 2007 until resigning in January 2016 to form his own venture, Otto Trucking. Before he left, however, Levandowski allegedly stole trade secrets from Google.
Uber announced its acquisition of Otto for $680 million in August 2016, at which point Google filed a demand for arbitration claiming that Levandowski breached his employment contract.
Nevada regulators confirmed in February 2017 that Otto was indeed using some of Waymo's designs. Weeks later, Waymo filed a lawsuit against Uber and Otto.
"We have reached an agreement with Uber that we believe will protect Waymo's intellectual property now and into the future. We are committed to working with Uber to make sure that each company develops its own technology," Waymo said in a statement Friday.