relativity space

Another Silicon Valley investor is getting into the rocket business.

Former Google chief executive Eric Schmidt has taken a controlling interest in the Long Beach, California-based Relativity Space. The New York Times first reported the change becoming official, after Schmidt told employees in an all-hands meeting on Monday.

Schmidt’s involvement with Relativity has been quietly discussed among space industry insiders for a few months. Multiple sources told Ars that he has largely been bankrolling the company since the end of October, when the company’s previous fundraising dried up.

It is not immediately clear why Schmidt is taking a hands-on approach at Relativity. However, it is one of the few US-based companies with a credible path toward developing a medium-lift rocket that could potentially challenge the dominance of SpaceX and its Falcon 9 rocket. If the Terran R booster becomes commercially successful, it could play a big role in launching megaconstellations.

Schmidt’s ascension also means that Tim Ellis, the company’s co-founder, chief executive, and almost sole public persona for nearly a decade, is now out of a leadership position.

“Today marks a powerful new chapter as Eric Schmidt becomes Relativity’s CEO, while also providing substantial financial backing,” Ellis wrote on the social media site X. “I know there’s no one more tenacious or passionate to propel this dream forward. We have been working together to ensure a smooth transition, and I’ll proudly continue to support the team as Co-founder and Board member.”

Terran R’s road to launch

On Monday, Relativity also released a nearly 45-minute video that outlines the development of the Terran R rocket to date and the lengths to which it must go to reach the launch pad. Tellingly, Ellis appears only briefly in the video, which features several other senior officials who presumably will remain with the company, including Chief Operating Officer Zach Dunn.

For several years, an innovative, California-based launch company named Relativity Space has been the darling of investors and media.

Relativity promised to disrupt launch by taking a somewhat niche technology in the space industry at the time, 3D printing, and using it as the foundation for manufacturing rockets. The pitch worked. Relativity’s chief executive Tim Ellis liked to brag that his first investor call was to Dallas Mavericks owner Mark Cuban, who cut the company’s first check. Cuban invested half a million dollars.

That was just the beginning of the torrent of fundraising by Ellis, who, by November 2023, turned the privately held Relativity into a $4.5 billion company following its latest, Series F funding. This was an impressive start for the company founded by Ellis and Jordan Noone, both engineers, in 2016.

A big bet

The Series F round occurred as Relativity was amid a bold gamble that, in hindsight, may have been a poor bet. In March 2023, the company launched its Terran 1 rocket for the first—and only—time. After this flight, Ellis announced that the company was pivoting immediately to developing the much larger and more capable Terran R rocket.

“It’s a big, bold bet,” Ellis said in an interview. “But it’s actually a really obvious decision.”

With an advertised capacity of more than 1 metric ton to low-Earth orbit and a “backlog” of launch contracts valued in the hundreds of millions of dollars, according to Ellis, Terran 1 had the potential to draw significant revenue. It could also have nabbed a share of launch contracts that have since been snared by competitors such as Rocket Lab, with its smaller Electron vehicle, and Firefly, with its comparably sized Alpha rocket.