Relativity Space, a Long Beach, California-based aerospace company specializing in 3D printing for rocket manufacturing, has secured a notable investment from former Google CEO Eric Schmidt. According to Bloomberg, Schmidt has been supporting the venture since last year. His backing arrives after Relativity encountered difficulties securing additional capital in 2024. While the exact amount remains undisclosed, Schmidt’s involvement highlights ongoing interest in Relativity’s methods despite recent financial strain.
Relativity Space did not provide details regarding Schmidt’s financial contribution but stated, “We continue to align ourselves with strong capital partners who believe in our mission and are supporting our ambitious programs.” Industry analysts interpret Schmidt’s involvement as a strategic endorsement that enhances Relativity’s credibility within the competitive aerospace sector. This support is seen as pivotal in helping the company navigate its financial challenges and advance its projects towards the targeted 2026 launch.
Founded in 2015 by Tim Ellis and Jordan Noone, Relativity Space aims to improve rocket production through extensive use of 3D printing. The company’s proprietary large-scale metal printers enable the creation of nearly all rocket components, significantly reducing production time and complexity. In 2023, Relativity launched its first rocket, Terran 1, in a test flight that failed to reach orbit. Following this setback, the company decided to discontinue Terran 1 and redirect its efforts towards developing Terran R, a larger vehicle scheduled for a 2026 launch. Despite these advancements, Relativity struggled financially in 2024, facing challenges in raising the necessary capital for Terran R’s development and daily operations.
Relativity Space Faces Financial Hurdles While Advancing Ambitious Projects
The Rocket company has experienced significant growth since its inception, achieving a valuation of $4.2 billion in 2021 with investors that include Fidelity Management & Research Company, Jared Leto, and Mark Cuban. The company’s commitment to fully 3D printed rockets represents a significant shift in aerospace manufacturing, aiming to reduce costs and production times while increasing flexibility and scalability.
The failure of Terran 1 in its maiden flight in March 2023 prompted a shift toward Terran R, a more advanced and partially reusable rocket designed to handle medium to heavy payloads with a capacity of up to 23,500 kilograms to low Earth orbit (LEO). This shift reflects the company’s adjustments in technological and operational strategies to meet market demands.
Central to Relativity’s work is the Stargate 3D printer, a system designed to produce large-scale metal rocket components. The fourth-generation Stargate operates with a horizontal orientation, enabling the creation of objects up to 120 feet in length and 24 feet in width. This approach removes the height restrictions found in previous vertical models, facilitating faster builds and more efficient design iterations. Production speeds can be as much as 12 times faster than earlier versions of Stargate, and the system’s metal deposition process reduces part counts in finished components. These improvements are seen as critical for the development of Terran R, which the company characterizes as a fully reusable rocket aimed at delivering heavier payloads to low Earth orbit.
Financial milestones have been a mix of significant achievements and recent challenges. By June 2021, Relativity had raised $1.335 billion, bolstering its valuation to $4.2 billion. However, the transition from Terran 1 to Terran R, coupled with a tightening investment market in 2024, led to financial strains. In November 2024, reports indicated that Relativity was struggling to secure additional capital, resulting in Fidelity Investments reducing the company’s valuation. Additionally, a Series F funding round in November 2023 secured $19.99 million, a notable decrease compared to previous rounds, highlighting the shifting investment landscape.
Schmidt’s investment is particularly significant given his extensive background in disruptive technology-driven ventures and strategic investments. Schmidt served as CEO of Alphabet Inc. (formerly Google) until 2011, then transitioned to executive chairman before leaving the board in 2019. Since then, his focus has been on philanthropic and investment efforts, alongside advisory roles with the US Government and his family foundation. His involvement with Relativity Space not only provides crucial financial support but also serves as a strategic endorsement that could attract further investments and partnerships, essential for advancing Terran R’s development and scaling operations to meet the growing demands of the space economy.
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Featured image shows the Terran R Launch. Photo via Relativity Space.
