Eric Schmidt Takes the Reins at Relativity Space: A New Chapter in Space Exploration

A Legendary Leader’s New Venture: Eric Schmidt Joins Relativity Space

After a decade of steering Google as its CEO and mentoring the company’s young founders, Larry Page and Sergey Brin, Eric Schmidt stepped back from the top role in 2011, handing the reins to Page. Since then, he has not taken on another CEO position—until now. In a significant move, Schmidt has taken a controlling stake in Relativity Space, a young rocket start-up based in Long Beach, California, and has assumed the role of CEO. This marks a bold step for both Schmidt and the company, signaling a new chapter in the competitive world of space exploration and rocket manufacturing.

Relativity Space, founded in 2016 by Timothy Ellis and Jordan Noone, has ambitious goals: to revolutionize rocket production by leveraging technologies like 3-D printing, automated robotics, and artificial intelligence to lower costs. The company aims to challenge established players in the industry, including Elon Musk’s SpaceX, and even has its sights set on creating an industrial base on Mars. However, the path to achieving these goals has not been smooth. Despite raising nearly $2 billion from high-profile investors like Coatue, BlackRock, and Mark Cuban, Relativity Space has faced significant challenges, including a failed rocket launch in 2023 and difficulties in securing new funding by the end of 2022.

A Shift in Leadership: Schmidt Steps In

Schmidt, now 69, succeeds Relativity Space’s co-founder and current CEO, Timothy Ellis. While the exact amount of Schmidt’s investment remains undisclosed, it is clear that his involvement is a game-changer for the company. Schmidt, who has a personal passion for aerospace and holds a pilot’s license, reportedly became interested in Relativity Space in 2024. His decision to invest through his family office, Hillspire, was contingent on taking over day-to-day operations—a move that underscores his confidence in the company’s potential.

During a meeting with employees, Schmidt expressed his enthusiasm for the project, emphasizing his focus on building up operations and improving product and manufacturing execution. His leadership is expected to bring stability and direction to a company that has faced setbacks, including the retirement of its Terran 1 rocket after a failed debut launch in 2023. The company has since shifted its focus to the Terran R, a larger rocket designed to compete directly with SpaceX’s Falcon 9 and Falcon Heavy.

Relativity Space’s Vision and Challenges

Relativity Space is part of a new wave of start-ups aiming to disrupt the rocket manufacturing industry by producing smaller, more affordable rockets capable of carrying payloads of up to two tons to low to medium Earth orbit. The company’s initial approach, which relied heavily on 3-D printed materials, was groundbreaking but ultimately proved too costly. As a result, Relativity Space has started incorporating more traditional components into its rockets, a decision that may increase production costs but could also improve reliability.

Despite these challenges, Relativity Space has managed to secure nearly $3 billion in future launch contracts, a testament to its potential. The company has also made notable progress, such as achieving “max-q” with its Terran 1 rocket—a milestone marking the point at which the vehicle experiences the strongest structural stress during flight. Additionally, the rocket successfully achieved stage separation, a critical step in the launch process. However, the significance of these achievements is somewhat tempered by the company’s decision to move away from its initial focus on 3-D printed materials.

The Bigger Picture: Competition and Ambition

The space industry is becoming increasingly crowded, with Relativity Space facing stiff competition from established players like Blue Origin, United Launch Alliance, Rocket Lab, and Firefly Aerospace. By 2026, when Relativity Space plans to launch its Terran R rocket, it will likely face even more rivals, including Blue Origin’s New Glenn and Rocket Lab’s Neutron. The competitive landscape is daunting, but Relativity Space’s long-term vision of establishing an industrial base on Mars sets it apart from many of its peers.

In 2022, Relativity Space announced an audacious plan to send the first private mission to Mars in collaboration with another start-up, Impulse Space. While the project was deemed “at the edge of crazy” by Ellis, it highlights the company’s bold ambition. The mission, which would have launched on a Terran R rocket, was initially slated for late 2024 but missed its window due to developmental delays. Despite this setback, the company remains committed to pushing the boundaries of space exploration.

The Significance of Schmidt’s Involvement

Eric Schmidt’s decision to invest in and lead Relativity Space is a vote of confidence in the company’s future. His extensive experience in scaling and managing high-tech companies like Google makes him an ideal candidate to steer Relativity Space through its current challenges. Schmidt’s involvement is expected to bring much-needed expertise in operations, manufacturing, and strategic planning, areas that are critical as the company seeks to establish itself as a major player in the rocket industry.

Furthermore, Schmidt’s influence extends beyond his operational expertise. His reputation and network could attract additional funding, talent, and partnerships, all of which are essential for Relativity Space’s success. His personal investments in aerospace and defense, including drone research and AI, also align well with the company’s focus on innovation and technology.

Conclusion: A New Era for Relativity Space

As Eric Schmidt takes the helm at Relativity Space, the company stands at a crossroads. With significant financial and operational challenges ahead, the road to success will not be easy. However, Schmidt’s leadership and investment provide a much-needed injection of confidence and resources. If Relativity Space can overcome its current hurdles and deliver on its ambitious goals, it has the potential to become a major force in the space industry.

The coming years will be critical for Relativity Space as it works to develop the Terran R rocket and compete in an increasingly crowded market. With Schmidt at the helm, the company may finally achieve the stability and direction it needs to realize its vision of making space exploration more accessible and affordable. Whether Relativity Space can meet its lofty aspirations remains to be seen, but one thing is clear: with Eric Schmidt on board, the company has gained a powerful ally in its quest to redefine the future of space travel.