Relativity Space has a new chief executive – and he doesn’t come from an aerospace background.

But, Eric Schmidt does come with experience as the former chief executive of Google.

And that includes an interest in artificial intelligence which he is expected to apply to Relativity’s manufacturing plant in Long Beach.

Madhu Thangavelu, a part-time lecturer of astronautical engineering at the Viterbi School of Engineering at USC and a lecturer in the School of Architecture, said that Schmidt’s knowledge of AI in particular would make him a “a solid asset for this company.”

Liang Sim, a senior adviser at Ann Arbor, Michigan-based aerospace consulting firm AeroDynamic Advisory, said that Schmidt taking over at Relativity is another example of a Silicon Valley billionaire who is entering the aerospace industry with a big splash.

“That’s what Elon Musk did (with SpaceX), and it’s what Jeff Bezos did (with Blue Origin). Now, Eric Schmidt,” Sim said. “He will bring some funding; he will bring a sense of urgency and mission to Relativity. He knows how to scale a business like he did at Google.”

Relativity is ready for that sort of growth, he added.

“They need to step it up to get their Terran R launch vehicle flying. I think Eric Schmidt will make that happen, just like Jeff Bezos is trying to do at Blue Origin,” Sim said.

What Schmidt brings to the table

Schmidt replaces former chief executive Tim Ellis, now a board member. Ellis cofounded the company with Jordan Noone in 2016. The two met as students at USC.

In a posting at LinkedIn from March 10, Ellis said that Schmidt, along with taking the reins of Relativity, would also provide “substantial financial backing.”

“I know there’s no one more tenacious or passionate to propel this dream forward,” Ellis said in his LinkedIn posting, which was also posted at X, the social media site owned by Musk that used to be known as Twitter. “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.”

It is not clear how much Schmidt had invested in the Long Beach company.

His interest in Relativity goes back to the fall, when he started putting money into it when its other investment sources dried up.

The company has an estimated valuation of $4 billion, according to Yahoo Finance.

This year, Schmidt agreed to invest in the company through Hillspire, his family office investment firm, and continue supporting Relativity on the condition that he would take over day-to-day operations, the New York Times reported, citing two people with knowledge of the matter.

Schmidt will focus on building up operations and improving product and manufacturing execution, the people told the Times.

Bloomberg first reported Schmidt had invested in Relativity in January.

Along with money from the billionaire, Relativity also gets Schmidt’s extensive knowledge of AI, said USC’s Thangavelu.

There are things that an AI agent can do better and more efficiently than a human can, which will be the expertise that Schmidt brings to Relativity, he said, adding, “He is going to bring a real good value for them.”

He added he suspects that Schmidt sees a role for AI in manufacturing.

“I think Eric is very bright in further progressing AI agents specifically for Relativity Space’s structures and rocket engines,” Thangavelu said.

Schmidt is likely going to apply Silicon Valley software and tech development, and it will add up quickly, said Sim, of AeroDynamic Advisory.

“That is what software thinking applied to launch vehicles does,” Sim added. “Other people are trying that as well, SpaceX and Blue Origin, etc. I expect that Eric will do the same.”

Blue Origin vs. Relativity

Blue Origin was started by Bezos, the founder of ecommerce giant and tech company Amazon.com Inc., in 2000 to make space more accessible for companies to get to. The Kent, Washington-based firm has New Shepard and the New Glenn rockets that are powered by reusable engines.

Relativity’s Terran R medium-to-heavy lift reusable rocket is comparable to the New Glenn rocket.

Both are very tall – with Terran R topping off at 284 feet while New Glenn comes in at 320 feet – and can bring large payloads to low earth orbit. The Terran R maximum payload is at nearly 74,000 pounds while the payload carried by New Glenn is nearly 100,000 pounds.

New Glenn flew in its inaugural flight in January while Terran R is scheduled for its first flight next year. The Blue Origin rocket’s first stage was lost in the Atlantic Ocean trying to land on a ship.

Relativity made its first and only flight in March 2023 with its Terran 1 rocket, which reached space but did not make it to orbit due to a problem with the second stage ignition. The company then retired the Terran 1 rocket and put its focus on the Terran R.

3D printing pullback?

Relativity started out as a company interested in lowering costs by 3D printing many of its parts and components, including the engines. For example, 85% of the Terran 1 rocket dubbed “Good Luck, Have Fun” was made by 3D printers, also known as additive manufacturing.

But is Relativity starting to pull back from its use of 3D printing?

“The startup has moved away from focusing entirely on 3D printed materials and has begun incorporating more traditionally made parts in building its rockets,” according to the New York Times story.

But Thangavelu had a differing opinion.

“I think they are demonstrating that automation is the way to go,” Thangavelu said. “All the rocket companies are doing this. They have a handle on the 3D printed rocket engines that they will use on Terran-R. And I wish them well.”

The Times story added that moving away from 3D printed materials would raise the cost of building rockets.

After the Terran 1 launch, Relativity Space reached close to $3 billion in future launch contracts with customers, the two people familiar with the company said, the Times reported.