Eric Schmidt joins Relativity Space as CEO

Eric Schmidt becomes CEO of Relativity Space, investing and focusing on Terran R's launch in 2026.

: Eric Schmidt, former CEO of Google, joins Relativity Space as its new CEO, succeeding co-founder Tim Ellis. Schmidt has taken a controlling stake in the company, which is preparing for the 2026 launch of its larger Terran R rocket, competing with SpaceX. Relativity Space, known for innovative 3D printing techniques, faced cash shortages and shifted focus away from Terran 1 to Terran R. The company has secured nearly $3 billion in launch contracts and aims to leverage Schmidt's experience and connections in the industry.

Eric Schmidt is now CEO of Relativity Space, a step that marks his return to such a role nearly fifteen years after leaving Google. Relativity Space, a promising figure in the aerospace start-up sector, is distinctive for its innovative approach to manufacturing rockets using 3D printing and robotics. Schmidt's appointment comes at a pivotal time for the company, with The New York Times reporting his significant investment and acquisition of a controlling interest. His expertise is anticipated to provide both financial backing and experienced leadership as the company progresses with its projects.

Schmidt, replacing co-founder Tim Ellis, intends to maintain the entrepreneurial spirit of Relativity Space, which has previously set ambitious plans, including the first private Mars mission, although some timelines have been pushed back. The focus is now on the Terran R, a larger and more advanced rocket model aimed at competing with SpaceX's Falcon 9 and Falcon Heavy. Relativity Space's move to finalize this project by 2026 has garnered interest, with contracts amounting to nearly $3 billion already secured from customers, as relayed by The New York Times.

This transition echoes Schmidt's previous role at Google, where he was recruited in 2001 to manage the fast-growing tech firm alongside founders Larry Page and Sergey Brin. His tenure at Google spanned a decade, and his ability to transform operations could be crucial for Relativity Space, which has faced cash flow challenges and criticism regarding its ambitious schedules. Bloomberg highlighted the company’s funding challenges in 2024, which led them to streamline their focus towards refining the Terran R project.

Notably, the Terran 1 project marked a technical achievement for Relativity Space, although its failure to reach orbit brought about a strategic pivot within the company. The Terran 1’s development was crucial in validating their manufacturing technology, and following its discontinuation, resources were reallocated to Terran R. Eric Schmidt’s extensive industry network, particularly in governance matters and Washington, D.C., may benefit Relativity Space through regulatory and contractual alignments with federal entities.

Previous backers of Relativity Space include notable investors such as Mark Cuban, BlackRock, and Fidelity, showing robust private sector interest and investment in its underlying technology. This move by Schmidt is expected to enhance Relativity Space's competitiveness against industry giants like SpaceX, Rocket Lab, and Blue Origin. The space race now pivots more than ever on technological ingenuity and strategic corporate leadership in which Schmidt is well-versed.

Sources: TechCrunch, New York Times, Bloomberg, The Wall Street Journal

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