Another Silicon Valley investor is getting into the rocket business.

In a significant shakeup in the aerospace sector, Eric Schmidt, the former chief executive of Google, has taken a controlling interest in Relativity Space, a Long Beach-based startup that has positioned itself as a potential challenger to SpaceX. This news, first reported by The New York Times, marks Schmidt's re-entry into a CEO role after nearly 15 years since he stepped down from Google. During an all-hands meeting on Monday, Schmidt communicated his investment and leadership transition to Relativity Space employees, emphasizing a new chapter for the company. This development has been buzzed about within space industry circles for several months, as insiders indicated Schmidt had been quietly funding the company since its previous fundraising efforts dwindled. His financial backing provides much-needed stability for Relativity Space, which has faced challenges in securing vital investments, particularly following the launch of its Terran 1 rocket earlier this year. While the Terran 1 successfully reached space as a majority-3D-printed vehicle, it ultimately failed to achieve orbit due to second-stage issues, casting doubts on the company’s prospects. Schmidt's involvement signals a shift in Relativity's leadership dynamics. Tim Ellis, the startup's co-founder and longtime CEO, has stepped down from the top position but remains on the board, voicing his support for Schmidt's leadership. In a post on social media site X, Ellis expressed confidence in Schmidt's tenacity and passion for advancing Relativity's goals, suggesting a carefully orchestrated transition. Key to Schmidt's strategic positioning is the development of the Terran R, a larger rocket designed for medium-lift missions that could potentially rival SpaceX's Falcon 9. The launch vehicle aims to deliver significant payload capacities—33.5 metric tons in expendable mode and 23.5 tons in reusable mode—though this shift means a departure from Relativity's initial 3D-printing innovations that attracted investor interest. As presented in a newly released nearly 45-minute video detailing the Terran R's journey, the company is opting for traditional manufacturing techniques for crucial components like payload fairings and pressure domes due to technical challenges experienced with 3D printing such parts. As Schmidt takes the reins, he faces the difficult task of balancing engineering aspirations with business efficiency—two areas where tensions have already surfaced. Senior manufacturing executive Zack Rubin acknowledged this challenge in the video, suggesting that the company must prioritize maximizing both technical innovation and commercialization viability. Looking ahead, the first flight version of the Terran R is slated for 2026, with aspirations for significant flight rates of 50 to 100 rockets annually in the future. Schmidt's entry is viewed as a gamble; if successful, it may redefine the competitive landscape of the launch industry and further the ambitions of establishing robust commercial space flight capabilities. This article has been analyzed and reviewed by artificial intelligence for clarity and accuracy. It’s evident that under Schmidt's stewardship, Relativity Space could pivot toward more conventional manufacturing methods while still aiming for innovative launches. Whether this gamble pays off remains to be seen, but Schmidt's track record at Google, combined with his financial resources, positions the company for potentially transformative growth in the rapidly evolving space industry.