Houston startup hopes to revolutionize the chatbot business

chatterboxes

Houston-based alive5 has over 800 customers using their chatbox services — and has found a special niche in sports team's websites. Photo via alive5.com

It seems like every other webpage nowadays has a virtual assistant that pops up via a chat box. A Houston startups is hoping to ride the wave of this digital marketing initiative.

Houston-based alive5 has created a platform that allows small-to-medium-sized businesses to engage customers using Chatbot Technology, from their websites, apps, SMS text-message, and social media pages.

"What we do at alive5 is really simple," says Glenn Gutierrez, COO and co-founder of alive5. "We help your business make more conversations."

Gutierrez and his co-founder Dustin Yu started out in 2017 as Alive Chat System and they were one of the first chat systems in Texas.

"Our chat system was kind of a common system that you might see on a website that says, 'Hey, how can I help you today?" says Gutierrez. "And when you press that button, somebody on the other end sends a message and says, 'Hey, how are you doing today? How can I help you?"

After exploring how to take the company, which was initially a lifestyle product, to scale, they added new products and found new ways for their clients to have more conversations with their customers.

"We had to create as many channels as possible outside of web chat," says Gutierrez. "We talked about the live chat system, moving into SMS text message, moving into social media and interestingly enough, we started moving into business cards with QR codes where people can actually scan a QR code or text a phone number and we can automatically build a relationship with a customer at an event, in person or from a billboard.

"And that activates pretty much all the rest of the system for businesses to be able to engage a customer. So we think about ourselves as the best way to help you create more conversations, not just on your website, but pretty much anywhere you would engage a customer."

The platform enjoyed a meteoric rise in the chat space due to its participation in Capital Factory's accelerator program. From there, they were placed in another accelerator program in Philadelphia, the Comcast NBCUniversal LIFT Labs Accelerator, powered by Techstars.

"Because of the boost from the accelerator programs, we developed relationships with a lot of great organizations," says Gutierrez. "Today, we service over 800 customers, including 200 of the top college sports teams and pro teams like the NBA, NFL and NHL."

The platform's collaboration helps teams sell more tickets, especially premium seat tickets, by facilitating conversations with VIP clients and allowing fans the opportunity to go to the team's website to use the automated chat solution.

"A good example of one of those is the Jacksonville Jaguars website," says Gutierrez. "You can go there and see one of our chat boxes available to assist with inquiries or questions that you may have before, during or after a game. And our solution is built for organizations with a high volume of customer interactions to automate some of those tier one questions."

Alive5 also services customers like Royal Caribbean Cruise Line, major hotel brands and other companies in the hospitality space. They are also now collaborating with Spectra Venue Management, which manages hundreds of venues throughout North America, to pilot alive5's messaging and concierge services.

Outside of their inroads in the chat space, the platform is creating AI-powered strategies to help companies maximize their communication opportunities at personal touchpoint events such as conferences and trade shows.

"With our A.I. powered business cards, we're able to take an engagement that happens at a conference, an event or at a networking session and turn that into a prospect that's now part of a company's digital lead funnel," says Gutierrez. "What we're proposing is to give them a laser-etched metal business card with the QR code. That is better than just giving them a paper business card that they will take and may or may not call you and that's it, that's the end of the interaction.

"With the QR code, a potential contact can scan it and it will send them a demo of our product to their phone and it will give them all of a client's contact details so they can reach out to that client anytime they're ready to buy. The best part about that is that now you have something that no other system can do and you have that customer's phone number available to you at any point in time."

Moving forward, the Houston-based platform wants to do everything within its power to be one of the most successful chat companies nationwide.

"I like to think about our product like a Lego set," says Gutierrez. "It's up to you to choose what package you want. I've been in the startup space for a long time and to finally see that ecosystem starting to mature to the point that businesses are more open to digitally transforming their organizations, where they're understanding the need to take risks, to try new things, that's great for us.

"When you think about a company that can help you with your communication, I want alive5 to be the first company on their minds."

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Houston lab explores how AI bots can help the elderly

AI for aging

The University of Houston’s Empathetic Lifespan AI & Robotics for Aging (ELARA) Lab is currently conducting research into how AI bots may be able to help the elderly live more social and independent lives through several ongoing initiatives.

The lab officially launched last month as part of the Gerald D. Hines College of Architecture & Design under the leadership of Assistant Professor Chorong Park. Part of the lab’s mission is tackling ongoing problems with aging, such as dealing with disabilities and social isolation. Researchers’ current work is focused on designing a new AI companion bot specifically tailored to the needs of older people.

“We need to take all the needs of older adults seriously,” Park said in a news release. “They won't use the robot if they don't feel at ease or if they feel they are being constantly watched.”

The field testing of new AI bots in this population hopes to overcome several traditional obstacles in technology use among the elderly. A study by Park shows that many older people have a fear of overt surveillance when using advanced AI. There is also ageism to consider. Most new technologies are designed with younger and employed buyers in mind, not retirees who may need help remembering daily tasks or accessing important information.

“The more older adults are excluded from technology development, the worse those technology gaps will become,” Park said. “AI and the majority of technologies are created for younger people, so my research method integrates older adults directly into the design process.”

ELARA recently collaborated with the Mamie George Community Center in Richmond, Texas, to track seniors’ response to desktop AI bots like Emo and Cupboo. Researchers also had participants use air-dry modeling clay to create their ideal robotic companion.

While the eventual AI bot may be able to help the elderly feel less isolated and more supported, there are concerns to consider. A study published in the Asian Journal of Psychology charted the development of delusional thinking in a 72-year-old woman who became convinced the empathic-response bot was in love with her. The rise of “AI psychosis” has the potential to exacerbate mental health problems, particularly in socially isolated people, which a quarter of Americans over the age of 65 are.

ELARA’s research is focused on creating “pet-like” AI models with enhanced trust cues. If it can overcome the dangers of socially isolated people relying on AI for companionship, it could be a big step forward for independent aging.

SpaceX IPO set to be biggest ever and could make Elon Musk a trillionaire

IPO News

SpaceX says it plans to raise up to $75 billion when it goes public this month, setting the stage for the largest-ever stock market debut and putting Elon Musk on course to becoming the world's first trillionaire.

The company, formally known as Space Exploration Technologies Corp., said Wednesday it will sell 555.6 million shares at $135 a piece in an initial public offering. The estimated proceeds would easily top the $26 billion raised by oil giant Saudi Aramco in 2019. The offering would also give SpaceX a market value of $1.77 trillion. Only six companies in the S&P 500 are currently worth more, with Nvidia tops at $5.2 trillion.

Besides the size of the offering and the expected proceeds, SpaceX's amended prospectus updates details about how much control of the company Musk will have. As SpaceX's CEO, chief technical officer and chairman, Musk's voting power will come primarily through his ownership of 5.22 billion Class B shares, which give the holder 10 votes for every share held. According to the filing, Musk would have 82.4% of the voting power in the company.

Forbes currently values Musk's net worth at $826 billion and his stake in SpaceX at $542 billion. The estimated value of his SpaceX holdings was based on an overall value for the company of $1.25 trillion. Based on those numbers, a $1.77 trillion valuation for SpaceX would boost Musk's net worth by $223 billion, making him a trillionaire. However, much of Musk's worth is in stock that he has yet to cash in.

Even as it makes a bid for a blockbuster market debut, SpaceX is currently losing billions of dollars a year. The filing shows that the company lost $2.6 billion from operations last year on $18.7 billion in revenue, and the losses kept piling up at the start of this year, too.

Fantastical plans

Time will tell how SpaceX fares on the market. Musk's plans for the company are as fantastical as the money he hopes raise in the sale.

Colorful, even frightening in parts, the IPO document strikes a contrast with the typically dry, technical prose in IPO documents, detailing plans to use proceeds from the sale to help put men on the moon again and perhaps even Mars. In one section, it talks of a need to build "a permanent human colony" on the red planet with "at least one million inhabitants" as existential threats loom that could consign man to "the same fate as the dinosaurs."

Musk has almost equally ambitious plans for his other publicly traded company, Tesla. His goal is to transform the maker of electric vehicles into a producer of robotaxis and humanoid robots. Dan Ives of Wedbush Securities wrote in a research note that he expects Tesla and SpaceX to merge next year.

AI plays a key role

Key to the success of both companies — and any merged entity — is artificial intelligence. In its IPO filing, SpaceX says it sees potential revenue from AI of up to $26.5 trillion. But that depends on another lofty Musk ambition — putting data centers in space, which is not technologically possible at the moment.

Transforming his space company into a primarily AI-focused company will be a challenge for Musk, who started xAI in 2023 with 11 other co-founders who have all since left. Some were recruited away by rivals.

Its main AI product, the chatbot Grok, is "less impressive than anything that we see from any other major player in the space, whether that's OpenAI, or Anthropic, or (Google's) Gemini," said IDC analyst Arnal Dayaratna.

Dayaratna said that doesn't mean SpaceX doesn't have potential as a major AI player, thanks in part to its computing partnership with Anthropic and Musk's recent deal that gave SpaceX the rights to buy AI coding tool Cursor for $60 billion later this year. Folding in Cursor's capabilities would give SpaceX access to the coveted business customers now using Anthropic's Claude or OpenAI's ChatGPT.

SpaceX plans to use the net proceeds from the IPO to fund the expansion of infrastructure for its AI and rocket businesses, and to beef up the constellation of satellites that power Starlink Mobile, among other investments.

The company plans to list on the Nasdaq under the symbol "SPCX" and could begin trading as soon as the end of next week.

And SpaceX isn't the only colossal market debut investors are now bracing for. Earlier this week, Anthropic submitted a confidential filing with the U.S. Securities and Exchange Commission to officially start its own IPO clock.

OpenAI has not yet reported filing the initial SEC paperwork, but an IPO from the ChatGPT maker is widely expected.

"This listing represents the first major test for public markets after years of muted IPO activity with SpaceX paving the way for AI giants Anthropic and OpenAI to follow soon after," Ives wrote.

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Associated Press Technology Writer Matt O'Brien contributed.

New UH survey reveals concerns over AI data center growth in Houston

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A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

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