Abbott highlights Texas AI boom, with Houston projects on the horizon

An aerial view of Stargate’s AI data center in Abilene. Photo courtesy OpenAI.

AI investments are booming in Texas, Gov. Greg Abbott says. And Houston is poised to benefit from this surge.

At a recent Texas Economic Development Corp. gathering in the Dallas-Fort Worth area, Abbott said AI projects on the horizon in the Lone Star State would be bigger than the $500 billion multistate Project Stargate, according to the Dallas Business Journal. So far, Stargate includes three AI data centers in Texas.

Stargate, a new partnership among OpenAI, Oracle, Softbank, and the federal government, is building AI infrastructure around the country. The project’s first data center is in Abilene, and the center’s second phase is underway. Once the second phase is finished, the 875-acre site will host eight buildings totaling about 4 million square feet with a power capacity of 1.2 gigawatts. An additional 600 megawatts of capacity might be added later.

On Sept. 23, Stargate announced the development of another five AI data centers in the U.S., including a new facility in Shackelford County, Texas, near Abilene. That facility is likely a roughly $25 billion, 1.4-gigawatt AI data center that Vantage Data Centers is building on a 1,200-acre site in Shackelford County.

Another will be in Milam County, between Waco and Austin. In conjunction with Stargate, OpenAI plans to occupy the more than $3 billion center, which will be situated on a nearly 600-acre site, the Austin Business Journal reported. OpenAI has teamed up with Softbank-backed SB Energy Global to build the facility.

Abbott said several unannounced AI projects in Texas — namely, data centers — will be larger than Stargate.

“Bottom line is ... when you look at diversification, the hottest thing going on right now is artificial intelligence,” Abbott said.

The Houston area almost certainly stands to attract some of the projects teased by the governor.

In Houston, Taiwanese tech manufacturer Foxconn already is investing $450 million to make AI servers at the 100-acre Fairbanks Logistics Park, which Foxconn recently purchased for a reported $142 million. The park features four industrial buildings totaling one million square feet. It appears Foxconn will manufacture the servers for Apple and Nvidia, both of which have announced they’ll open server factories in Houston.

The Foxconn, Apple, and Nvidia initiatives are high-profile examples of Houston’s ascent in the AI economy. A report released in July by the Brookings Institution identified Houston as one of the country’s 28 “star” hubs for AI.

The Greater Houston Partnership says the Houston area is undergoing an "AI-driven data revolution."

“As Houston rapidly evolves into a hub for AI, cloud computing, and data infrastructure, the city is experiencing a surge in data center investments driven by its unique position at the intersection of energy, technology, and innovation,” the partnership says.

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Houston ranks No. 16 in the Brookings Institution’s list of metros that are AI “stars.” Photo via Getty Images.

Houston named ‘star’ metro for artificial intelligence in new report

eyes on AI

A new report declares Houston one of the country’s 28 “star” hubs for artificial intelligence.

The Houston metro area appears at No. 16 in the Brookings Institution’s ranking of metros that are AI “stars.” The metro areas earned star status based on data from three AI buckets: talent, innovation and adoption. Only two places, the San Francisco Bay Area and Silicon Valley, made Brookings’ “superstar” list.

According to Brookings, the Houston area had 11,369 job postings in 2024 that sought candidates with AI skills, 210 AI startups (based on Crunchbase data from 2014 to 2024), and 113 venture capital deals for AI startups (based on PitchBook data from 2023 to 2024).

A number of developments are boosting Houston’s AI profile, such as:

Brookings also named Texas’s three other major metros as AI stars:

  • No. 11 Austin
  • No. 13 Dallas-Fort Worth
  • No. 40 San Antonio

Brookings said star metros like Houston “are bridging the gap” between the two superstar regions and the rest of the country. In 2025, the 28 star metros made up 46 percent of the country’s metro-area employment but 54 percent of AI job postings. Across the 28 metros, the number of AI job postings soared 139 percent between 2018 and 2025, according to Brookings.

Around the country, dozens of metros fell into three other categories on Brookings’ AI list: “emerging centers” (14 metros), “focused movers” (29 metros) and “nascent adopters” (79 metros).

Health care companies dominated Fortune's America’s Most Innovative Companies report for 2025, with Houston’s top-rated company on the list falling into that sector. Photo via Getty Images

8 Houston companies earn spots among Fortune's most innovative for 2025

top honor

Eight Houston companies have been named to Fortune’s third annual list of America’s Most Innovative Companies, joining another 16 from the state of Texas.

The group of 300 companies nationwide was rated based on production innovation, process innovation, and innovation culture, according to Fortune. In partnership with Statista, the magazine considered IP portfolios, employee, expert and customer opinions; and many other factors.

While many of the top-rated companies fell into the tech sector, Fortune reports that health care companies made up the largest portion of the 2025 list. Sixty-three honorees fell into the health care category, including Houston’s top-rated company, Houston Methodist.

Here’s which Houston companies made the list and where they ranked:

  • No. 35 — Houston Methodist
  • No. 54. — ExxonMobil
  • No. 137 — NRG Energy
  • No. 158 — Hewlett-Packard Enterprise
  • No. 169 — BMC Software
  • No. 175 — Texas Children’s Hospital
  • No. 227 — Sysco
  • No. 268 — Chevron

“This award is a true credit to the culture we have created around innovation and the incredible work of Roberta Schwartz, our Chief Innovation Officer, and her team at the Center for Innovation,” Marc Boom, CEO of Houston Methodist, said in a LinkedIn post. “They have really set the tone for how we can use innovation and technology to continue to deliver the highest quality care for our patients.”

Dallas-Fort Worth claimed the largest number of Texas companies on the list, with 11 headquartered in the metroplex. Houston was home to the second-most with eight hailing from the Bayou City. Austin is home to only four of the companies on the list, however, companies from the Capital City ranked higher on average, with Oracle, Tesla and Dell Technologies claiming the top three spots for the state. Beloved Texas grocer H-E-B was the one company to represent San Antonio.

Here's how the other Texas companies fared:

  • No. 6 — Oracle
  • No. 11 — Tesla
  • No. 14 — Dell Technologies
  • No. 37 — AT&T
  • No. 59 — Texas Instruments
  • No. 89 — Charles Schwab
  • No. 91 — McKesson
  • No. 113 — Jacobs Solutions
  • No. 125 — Baylor, Scott & White Health
  • No. 165 — Frontier Communications
  • No. 201— H-E-B
  • No. 210 — CBRE Group
  • No. 219 — TTEC Holdings
  • No. 223 — GameStop
  • No. 251 — American Airlines Group
  • No. 271 — Caterpillar

California-based tech conglomerate Alphabet Inc. topped the list for the third year in a row, and California companies again represented the majority of companies on the list, according to Fortune. Alphabet, Microsoft, Apple, IBM and Salesforce made up the top five, of which three are headquartered in California.

The 2025 group had a median revenue of $22 billion over the last 12 months, according to Fortune. See the full report here.

Apple's Houston factory will open in 2026. Getty Images

Apple announces 250,000-square-foot Houston factory as part of $500B plan

The Big Apple

As part of a more than $500 billion, four-year investment across the U.S., Silicon Valley tech giant Apple plans to build a factory in Houston that will produce servers for its data centers to support the company’s artificial intelligence (AI) business.

In a February 24 announcement, Apple says the company and its partners will build the 250,000-square-foot factory. The plant, set to open in 2026, will employ thousands of people. The announcement doesn’t mention where the plant will be located or how much the project will cost.

“Previously manufactured outside the U.S., the servers that will soon be assembled in Houston play a key role in powering Apple Intelligence, and are the foundation of Private Cloud Compute, which combines powerful AI processing with the most advanced security architecture ever deployed at scale for AI cloud computing,” according to the announcement.

Various media outlets report that Apple is shifting AI server manufacturing and other operations to the U.S. to escape President Trump’s 10% tariff on imports from China. Apple makes many of its iPhones and other tech products in China in partnership with Taiwanese electronics manufacturer Foxconn.

The New York Times says Foxconn will be involved in the Houston factory. Last year, Foxconn spent $33 million to buy 10 acres and a building north of Houston in Harris County, adjacent to one of its warehouses, that it said would be used for its AI server business, according to The Times and Focus Taiwan.

Other countries that produce Apple products include India, Japan, South Korea, Taiwan and Vietnam, according to IndustryWeek.

The Houston plant announcement comes just days after Apple CEO Tim Cook met with Trump at the White House.

“We are bullish on the future of American innovation,” Cook says in a news release, “and we’re proud to build on our long-standing U.S. investments with this $500 billion commitment to our country’s future.”

With establishment of the factory in Houston, Apple will enjoy access to a deep pool of manufacturing workers. As of December, nearly 240,000 people held manufacturing jobs in the Houston area, according to the U.S. Bureau of Labor Statistics. The Greater Houston Partnership says the Houston area is home to over 7,000 manufacturers that produce more than $75 billion worth of goods each year.

Given the region’s solid manufacturing base, Apple should be able to attract plenty of job candidates for its Houston facility.

“Apple’s announcement further solidifies Houston’s leadership as a hub for innovation and advanced manufacturing,” Steve Kean, president and CEO of the Greater Houston Partnership, says in a statement. “This is a testament to our region’s business-friendly environment, skilled workforce, strategic global positioning, and proven ability to attract world-class companies. As U.S. companies continue to onshore their manufacturing operations, we are bullish on Houston’s ability to win big.”

"I am pleased with today's announcement and would like to give a shout-out to Apple for plans to bring a state-of-the-art facility to Houston. My administration believes in collaborating with corporations to ensure they know Houston is a place of opportunity. We have the talent and a can-do attitude to get things done," said Mayor John Whitmire via an email statement.

"Last year, Chevron announced its move from California to Houston. Today, Vestas, a leading global wind turbine manufacturer, is opening a new corporate office in Houston. Apple's announcement is a powerful message to everyone that the City of Houston is recognized as a place to live and work and the best major city in America to do business."

As the use of AI continues to grow, companies like Apple need more computing power. Thus, the company is making servers — housed at an escalating number of data centers — that bolster its Apple Intelligence program. Apple describes the program as a “personal intelligence system that helps users write, express themselves, and get things done.”

Over the next four years, Apple aims to add about 20,000 employees in Houston and other U.S. locations, mostly in AI and machine learning, research and development, silicon engineering, and software development. Aside from Texas, Apple is expanding in Arizona, California, Iowa, Michigan, Nevada, North Carolina, Oregon, and Washington.

In Texas, Apple already maintains a significant presence in Austin, where it employs about 7,000 people at two corporate campuses. Elsewhere in the Austin area, it has offices in West Lake Hills and San Marcos. It also maintains an office in Dallas.

The analysis cites Amazon, Apple, and Tesla as three of the major employers in Texas pursuing AI initiatives. Photo via Getty Images

Texas ranks as top state for interest in AI-related job postings

eye on AI

If internet search volume is an accurate barometer, Texas is a hotbed for interest in artificial intelligence jobs.

An analysis by Agility Writer, whose technology helps users produce AI-generated content, shows Texas ranks second among the states with the highest monthly search volume for AI-related jobs. The analysis puts Texas’ monthly search volume at 1,300, with California sitting in first place at 1,900 monthly searches.

“As the AI revolution continues to gain momentum, the geographic distribution of interest in AI careers is likely to evolve further, with states investing in AI education and fostering supportive ecosystems poised to reap the benefits of this transformative technology,” says Adam Yong, CEO of Agility Writer.

The analysis cites Amazon, Apple, and Tesla as three of the major employers in Texas pursuing AI initiatives.

Dice.com, a search engine for tech jobs, says AI roles that are in high demand include machine learning engineer, data scientist, AI research scientist, and robotics engineer.

“Looking forward, the demand for AI professionals is expected to intensify as technologies continue to advance and integrate into everyday business processes and consumer products. AI is not just creating jobs but also transforming them, requiring workers to adapt by gaining new skills,” says Dice.com.

A January 2024 report from career platform LinkedIn found that AI consultant and AI engineer are two of the 25 fastest-growing jobs in the U.S. this year. Most of these roles are concentrated in San Francisco, New York City, Washington, D.C.-Baltimore, and Boston, according to the report.

On the flip side, some analysts predict millions of jobs will be affected by or even lost to AI. For example, research from investment banking giant Goldman Sachs indicates roughly two-thirds of U.S. occupations “are exposed to some degree of automation by AI.”

A study released in 2023 by Chamber of Commerce, a business research company, anticipates as many as 12 percent of Houston-area workers could lose their jobs by 2027 due to AI.

"AI and technology in general may be taking certain jobs away, and yet we also see how it is changing the nature of jobs and even organizations and professions. In the ever-changing arena of AI, employees, job-seekers, and students will continue to adapt and learn new job skills that align with and anticipate workforce needs,” AI expert Fred Oswald, the Herbert S. Autrey Chair in Social Sciences at Rice University and a professor of psychological sciences, said in a 2023 news release.

Temporary gatherings — like conferences and hackathons — are essential to attracting third-party developers. Photo via Getty Images

Rice expert: Why tech companies should sponsor hackathons

houston voices

Companies like Amazon, Microsoft and Apple depend on third-party developers to create applications that improve the user experience on their platforms. However, given the many options available, developers face a daunting task in deciding which platform to focus their efforts on.

“Developers are faced with imperfect information,” says Rice Business assistant professor Tommy Pan Fang. “They don’t have an overview of the entire technology landscape.”

A team of researchers, consisting of Fang, Andy Wu (Harvard University) and David Clough (University of British Columbia), set out to investigate how temporary gatherings like “hackathons” — in-person software development competitions — might influence a developer’s choice of software platform.

Hackathons like Rice University’s annual HackRice draw developers looking to pick up new skills and create applications with teammates. Many of these events are sponsored by software platform companies.

The research team conjectured that hackathon attendees are more likely to adopt a particular platform if any of the following conditions are true:

  • A high number of fellow attendees have already embraced it.
  • A fellow attendee has built an award-winning hackathon project on it.
  • The platform that sponsors the hackathon is already popular.

To test their theories, the researchers followed 1,302 software developers participating in 167 hackathons from January 2014 to May 2017. Twenty-nine different platforms sponsored the hackathons. Fang and his colleagues tracked developers’ platform choices before and after the in-person events.

The researchers found that temporary gatherings — like hackathons, conferences and trade fairs — make a difference.

Developers with greater technical expertise were more likely to use a platform widely embraced by fellow hackathon attendees. And with every 10% increase in the number of hackathon attendees already using a given platform, other attendees were 1.2% more likely to try out that platform themselves the following year.

They also found that platforms benefit from sponsoring temporary gatherings, like hackathons.

Developers who attended a hackathon sponsored by a particular platform were 20.4% more likely to adopt that platform in the following year, compared to developers who either did not attend any hackathon or attended one without a sponsor.

Part of the reason for the findings is that developers at hackathons exert social influence on each other, both during organized hackathon events like competitions and workshops, as well as informal ones including ping pong tournaments or nights playing video games.

“The social interaction and seeing their peers be successful with the tools and what’s fashionable impacts the tools they decide to adopt,” says Fang. “For developers trying to figure out what technology to adopt in a world with imperfect information and uncertainty, having a gathering can be a beacon.”

Interviews with hackathon organizers, sponsors and developers in the U.S. and Canada backed up the researchers’ findings. Interviewees shared how they learned from their interactions with fellow developers during hackathons.

“When I’m walking around, it becomes noticeable what technologies people are using,” said a veteran of 15 hackathons. Another noted that if more people use a certain application programming interface, “it’s lower risk because it will be usable.” They added, “Most people just follow others.”

The study has implications for both developers and software platform companies alike. Results suggest hackathons can be a valuable venue for developers, not only to pick up new skills, but also to help them identify which platforms to use in the first place. For software companies, the lesson is simple: Sponsoring hackathons can be good for business.

Future research could look at how other types of events like conferences, tournaments and world’s fairs might impact how people end up adopting technologies, especially emerging ones, Fang says. For example, a company like OpenAI could use these types of in-person events to garner support and build momentum for its products.

“Companies that may have taken a step back during Covid should reevaluate in-person events to get people excited and regain momentum for their platforms,” Fang says. “The take-home message is, go out there and sponsor these events.”

This article originally ran on Rice Business Wisdom. For more, see Fang, et al. “Platform diffusion at temporary gatherings: Social coordination and ecosystem emergence.” Strategic Management Journal 42.2 (2021): 233-272. https://doi.org/10.1002/smj.3230.

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Rice Alliance and the Ion leader Brad Burke to retire this summer

lasting legacy

Brad Burke—a Rice University associate vice president who leads the Ion District’s Rice Alliance for Technology and Entrepreneurship and is a prominent figure in Houston’s startup community—is retiring this summer after a 25-year career at the university.

Burke will remain at the Rice Alliance as an adviser until his retirement on June 30.

“Brad’s impact on Rice extends far beyond any single program or initiative. He grew the Rice Alliance from a promising campus initiative into one of the most respected university-based entrepreneurship platforms,” Rice President Reginald DesRoches said in a news release.

During Burke’s tenure, the Rice Business School went from unranked in entrepreneurship to The Princeton Review’s No. 1 graduate entrepreneurship program for the past seven years and a top 20 entrepreneurship program in U.S. News & World Report’s rankings for the past 14 years.

“Brad didn’t just build programs — he built an ecosystem, a culture, and a reputation for Rice that now resonates around the world,” said Peter Rodriguez, dean of the business school. “Through his vision and steady leadership, Rice became a place where founders are taken seriously, ideas are rigorously supported, and entrepreneurship is embedded in the fabric of the university.”

One of Burke’s notable achievements at Rice is the creation of the Rice Business Plan Competition. During his tenure, the competition has grown from nine student teams competing for $10,000 into the world’s largest intercollegiate competition for student-led startups. Today, the annual competition welcomes 42 student-led startups that vie for more than $1 million in prizes.

Away from Rice, Burke has played a key role in cultivating entrepreneurship in the energy sector: He helped establish the Energy Tech Venture Forum along with Houston Energy and Climate Startup Week.

Furthermore, Burke co-founded the Texas University Network for Innovation and Entrepreneurship in 2008 to bolster the entrepreneurship programs at every university in Texas. In 2016, the Rice Alliance assumed leadership of the Global Consortium of Entrepreneurship Centers.

In 2023, Burke received the Trailblazer Award at the 2023 Houston Innovation Awards and was recognized by the Deshpande Foundation for his contributions to innovation and entrepreneurship in higher education.

“Working with an amazing team to build the entrepreneurial ecosystem at Rice, in Houston, and beyond has been the privilege of my career,” Burke said in the release. “It has been extremely gratifying to hear entrepreneurs say our efforts changed their lives, while bringing new innovations to market. The organization is well-positioned to help drive exponential growth across startups, investors, and the entrepreneurial ecosystem.”

Starting April 15, John “JR” Reale Jr. will serve as interim associate vice president at Rice and executive director of the Rice Alliance. He is managing director of the alliance and co-founder of Station Houston, beginning April 15. Reale is co-founder of the Station Houston startup hub and a startup investor and was also recently named director for startups and investor engagement for the Ion.

“The Rice Alliance has always been about helping founders gain advantages to realize their visions,” Reale said. “Under Brad’s leadership, the Rice Alliance has become a globally recognized platform that is grounded in trust and drives transformational founder outcomes. My commitment is to honor what Brad has built and led while continuing to serve our team and community, deepen relationships and deliver impact.”

Burke joined the Houston Innovators Podcast back in 2022. Listen to the full interview here.

Houston team uses CPRIT funding to develop nanodrug for cancer immunotherapy

cancer research

With a relative five-year survival rate of 50 percent, pancreatic cancer is a diagnosis nobody wants. At 60 percent, the prognosis for lung cancer isn’t much rosier. That’s because both cancers contain regulatory B cells (Bregs), which block the body’s natural immunity, making it harder to fight the enemies within.

Newly popular immunotherapies in a category known as STING agonists may stimulate natural cancer defenses. However, they can also increase Bregs while simultaneously causing significant side effects. But Wei Gao, assistant professor of pharmacology at the University of Houston College of Pharmacy, may have a solution to that conundrum.

Gao and her team have developed Nano-273, a dual-function drug, packaged in an albumin-based particle, that boosts the immune system to help it better fight pancreatic and lung cancers. Gao’s lab recently received a $900,000 grant from the Cancer Prevention and Research Institute of Texas (CPRIT) to aid in fueling her research into the nanodrug.

“Nano-273 both activates STING and blocks PI3Kγ—a pathway that drives Breg expansion, while albumin nanoparticles help deliver the drug directly to immune cells, reducing unwanted side effects,” Gao said in a press release. “This approach reduces harmful Bregs while boosting immune cells that attack cancer, leading to stronger and more targeted anti-tumor responses.”

In studies using models of both pancreatic and lung cancers, Nano-273 has shown great promise with low toxicity. Its best results thus far have involved using the drug in combination with immunotherapy or chemotherapy.

With the CPRIT funds, Gao and her team will be able to charge closer to clinical use with a series of important steps. Those include continuing to test Nano-273 alongside other drugs, including immune checkpoint inhibitors. Safety studies will follow, but with future patients in mind, Gao will also work toward improving her drug’s production, making sure that it’s safe and high-quality every time, so that it is eventually ready for trials.

Gao added: “If successful, this project could lead to a new type of immunotherapy that offers lasting tumor control and improved survival for patients with pancreatic and lung cancers, two diseases that urgently need better treatments."

Houston booms as No. 2 U.S. metro for new home construction

Construction Boom

Driven by population growth, more residential rooftops are popping up across Houston and the rest of Texas than anywhere else in America.

Using data from the U.S. Census Bureau and Zillow, Construction Coverage found 65,747 new residential units were authorized in greater Houston in 2024. That figure landed Houston in second place among major metro areas for the total number of housing permits, including those for single-family homes, apartments, and condos.

Just ahead of Houston was the Dallas-Fort Worth Metroplex, which took first place with 71,788 residential permits approved in 2024. In third place was the country’s largest metro, New York City (57,929 permits).Elsewhere in Texas, the Austin metro ranked sixth (32,294 permits), and the San Antonio metro ranked 20th (14,857 permits).

Construction Coverage also sorted major metro areas based on the number of new housing units authorized per 1,000 existing homes in 2024. Raleigh, North Carolina, held the No. 1 spot (28.8 permits per 1,000 existing homes), followed by Austin at No. 2 (28.6), DFW at No. 3 (22.2), Houston at No. 4 (21.6), and San Antonio at No. 13 (13.6).

A Newsweek analysis of Census Bureau data shows building permits for 225,756 new residential units were approved in 2024 in Texas — a trend fueled largely by activity in DFW, Houston, Austin, and San Antonio. That put Texas atop the list of states building the most residential units for the year.

Through the first eight months of last year, 145,901 permits for new residential units were approved in Texas, according to Census Bureau data. That’s nearly 80,000 permits shy of the 2024 total.

Among the states, Construction Coverage ranks Texas sixth for the number of residential building permits approved in 2024 per 1,000 existing homes (17.9).

Extra housing is being built in Texas to meet demand spurred by population growth. From April 2020 to July 2024, the state’s population increased 7.3 percent, the Census Bureau says.

While builders are busy constructing new housing in Texas, they’re not necessarily profiting a lot from homebuilding activity.

“Market conditions remain challenging, with two-thirds of builders reporting they are offering incentives to move buyers off the fence,” North Carolina homebuilder Buddy Hughes, chairman of the National Association of Home Builders, said in a December news release. “Meanwhile, builders are contending with rising material and labor prices, as tariffs are having serious repercussions on construction costs.”

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