Both sides in the case issued statements confirming the settlement Friday morning in the midst of a federal court trial in the case.
As part of the agreement, Uber is giving a 0.34 percent Uber stake to Waymo, worth approximately $245 million (£177m).
However, Uber maintains that it did not use any stolen information and doesn't believe such data ever made it into Uber's hands, beyond concepts that would have been in the head of Mr Levandowski.
In a case that has riveted Silicon Valley the saga began when Otto, a self-driving truck company co-founded by former Google employee Anthony Levandowski, was acquired by Uber for $650m in 2016. LiDAR - or Light Detection and Ranging - bounces millions of laser beams off surrounding objects to get a 3D picture of the world.
Waymo sought damages as well as injunctive relief, a remedy that could have cost Uber more than $1 billion and put the brakes on the continuation of its self-driving vehicle project.
UBER AND WAYMO have settled their differences out of court, bringing a sudden halt to what had been expected to be a lengthy trial.
Uber ATG is the company's "advanced technology group", an engineering team working on self-driving technologies, mapping, and vehicle safety.
Dara Khosrowshahi, CEO of Uber, released a statement regarding his company's "acknowledging and correcting mistakes of the past".
Levandowski was the engineer who built Google's first self-driving auto.
The jury was also shown a clip - sent from Levandowski to Kalanick - from the 1987 film "Wall Street" in which the Michael Douglas lead character proclaims "greed is good". Kalanick said he used the phrase "from time to time".
"In doing so, I want to express regret for the actions that have caused me to write this letter".
"To our friends at [Waymo parent company] 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". The details of the eight trade secrets Uber was accused of using have not been made public.
It is now developing a self-driving hybrid Ford Fusion fitted with radar and lidar sensors, as well as high-resolution cameras - and says that the vehicle should soon be appearing on the streets of Pittsburgh.