Former Google CEO Eric Schmidt invests in and becomes CEO of Relativity Space, signaling a major shift as the company accelerates the development of its Terran R rocket. Is this the game-changing move the space industry has been waiting for?

Why is Eric Schmidt, the Former Google CEO, Betting Big on Relativity Space?

Eric Schmidt, the tech titan behind Google's rise, is now the CEO of Relativity Space, marking a seismic shift in the launch vehicle company's trajectory.

A company spokesperson confirmed that Schmidt assumed his role March 10, a move first reported by The New York Times. Schmidt's resume speaks volumes:

• CEO of Google (2001-2011)
• Executive Chairman of Google/Alphabet (2011-2017)
• Chairman of the Pentagon’s Defense Innovation Advisory Board (2016-2020)

With an estimated net worth of $34 billion, Schmidt's interest in Relativity reportedly grew over the past year. He's not just taking the helm; he's making a significant investment, though the exact figure remains undisclosed.

What Does This Mean for Relativity's Founder, Tim Ellis?

Tim Ellis, the co-founder who steered Relativity from its inception, isn't stepping away entirely. He's remaining on the board, ensuring his vision continues to influence the company's direction. This transition raises key questions:

• What strategic shifts will Schmidt implement?
• How will Ellis's continued involvement shape the company's future?
• Will this leadership change accelerate Relativity's mission to revolutionize space access?

Can 3D Printing Disrupt the Rocket Industry?

Relativity entered the launch market with a bold strategy: relying almost entirely on additive manufacturing, or 3D printing, to build its rockets. The promise? Eliminating traditional manufacturing constraints and unlocking unprecedented flexibility.

"We have all the elements to make Terran R a commercially competitive launch vehicle" - Mo Shahzad, president and chief financial officer, Relativity.

This approach initially fueled significant venture capital, including a $650 million Series D round in June 2021 that valued the company at $4.2 billion. But can this innovative manufacturing process truly disrupt the established order?

What's the Status of the Terran R Rocket?

Relativity's journey began with the smaller Terran 1 rocket. However, the company swiftly pivoted to the larger, fully reusable Falcon 9-class Terran R. Key milestones include:

• Terran 1 Launch (March 2023): Failed to reach orbit.
• Terran 1 Retirement (April 2023): Focus shifted to the redesigned Terran R, targeting a 2026 launch.
• Terran R Critical Design Review (December): Completed successfully.
• Flight Hardware Production: Commenced for first and second-stage barrels.

The company is also making strides with the Aeon R engine, which will power the Terran R. They're currently testing a "flight-intent" version, boasting over 2,500 seconds of testing with flight-like software and a printed sea-level nozzle.

Is There a Demand for Another Launch Provider?

The $2.9 billion backlog Relativity has for Terran R, "shows how desperate the market is for another cost-effective launch services provider" - Josh Brost, chief revenue officer of Relativity.

Relativity is targeting the sweet spot for LEO constellations, promising the best economics in the market. According to Brost, customers are "voting with their checkbooks," validating the need for a cost-effective alternative to SpaceX's dominance.

Will Relativity Meet Its 2026 Launch Target?

Relativity is aiming for a first launch of Terran R as early as late 2026 from Cape Canaveral, Florida. This ambitious timeline faces numerous challenges:

• Scaling up production of 3D-printed components.
• Completing rigorous testing of the Aeon R engine.
• Securing additional funding to support development.

Can Relativity overcome these hurdles and deliver on its promise? Only time will tell if Eric Schmidt's leadership and investment can propel Relativity to the forefront of the space race.