The reaction introduces a new chiral center into your mix, that chiral carbon being the one that has the tertiary alcohol on it (let’s call this #2).
The product will produce a mixture of those chiral centers being flipped between R and S, but you need to remember that there is a preexisting chiral center (let’s call it #1) that we have before creating this new one.
Recall:
- enantiomers occur when all chiral centers are flipped
- diastereomers occur when one, but not all, chiral centers are flipped.
This reaction can have a mixture of #2 being R or S - but it has #1's chirality the same (s). This means not all chiral centers were flipped, creating diastereomer mixtures.
He says if the reactant has no chiral carbon and product formed is chiral then it would be a racemic mixture. But why?
So that occurs whenever we transition that sp2 carbon to sp3, turning the carbonyl into an alcohol (reduction), but that "rule" he gave says if there's no chiral carbon — we do actually have chiral carbons before the reaction starts — so the auto answer of "racemic mixture" doesn't quite apply here.