Eric Schmidt, the former CEO of Google and former executive chairman of Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), has reportedly invested in Relativity Space Inc., a company specializing in 3D-printed rockets.
What Happened: Relativity Space, headquartered in Long Beach, California, was established in 2015 with the ambition of creating rockets that are nearly entirely 3D-printed. The company, which encountered fundraising hurdles in 2024, launched its first rocket, Terran 1, in 2023 but failed to achieve orbit. They have since redirected their efforts towards the larger Terran R, anticipated to launch in 2026. According to Bloomberg, Schmidt has been supporting the company since last year.
Schmidt's investment came at a time when the company faced difficulties in securing capital for the development of Terran R and its daily operations. The company was valued at $4.2 billion in 2021, with investors such as Fidelity Management & Research Company, Jared Leto, and Mark Cuban.
Schmidt, who served as Google's CEO until 2011 and later as executive chairman, has been involved in various philanthropic and investment endeavors since leaving the board in 2019.
Schmidt and Relativity Space have yet to respond to Benzinga's queries.
Why It Matters: The investment by Eric Schmidt in Relativity Space comes at a time when the modern space race is intensifying, with private companies vying for dominance in orbit. This new era, often referred to as "Space Race 2.0," presents significant investment opportunities as private enterprises, such as SpaceX, lead the charge. In 2024, SpaceX achieved a milestone with 134 launches, showcasing the rapid advancements in the industry. Relativity Space, despite its initial setbacks, remains a key player in this competitive landscape.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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