Houston experts: Can AI bridge the gap between tech ambitions and market realities?

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By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. Photo via Getty Images

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 did not provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

  1. Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.
  1. Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.

  2. Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.

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Hong Ogle is the president of Bank of America Houston. Rodrigo Ortiz Gomez is a market executive in Bank of America’s Transformative Technology Banking Group as well as the national software banking lead for the Global Commercial Bank.

Eleven business leaders were selected for a new entrepreneurship-focused council for Rice University. Photo courtesy of Rice University

Rice University taps 11 Houston business leaders for new entrepreneurship council

leadership council

Rice University has named 11 successful business leaders with ties Houston to its inaugural council focused on entrepreneurship.

Frank Liu, a Rice alumnus and founder of the Rice University Liu Idea Lab for Innovation and Entrepreneurship, or Lilie, recruited the entrepreneurs to the council, and each has agreed to donate time and money to the university’s entrepreneurship programs, according to the university.

Members of the council, known as the Lilie’s Leadership Council or LLC, individuals have experience in a variety of fields, from the industrial and automotive sectors to local government and public radio.

"I owe much of my entrepreneurial success to opportunities I had while at Rice University,” Liu says in a statement. “I can't imagine the heights students today can achieve with the resources that now exist through Lilie. Over the last several years, as the No. 1 ranked Graduate Entrepreneurship program in the country, we have seen exponential growth in student engagement, and we have witnessed the life-changing technologies—tackling big problems in industries like energy and healthcare—bred within Lilie classes and programs. I am thankful for the commitment of Lilie's Leadership Council for propelling these founders from the classroom to the community and building the next generation of Houston's economy.”

LCC's inaugural cohort includes:

  • Sandy P. Aron: president of Hunington Properties who has served on the boards of the St. Francis Episcopal Day School of Houston, Congregation Beth Israel of Houston and Jones Partnership at Rice’s Jones Graduate School of Business
  • John Chao, vice president and managing director of Westlake Innovations and board member of Westlake Corp. The Rice alumnus previously served as COO of New York Public Radio and partner in the strategy and finance practice at McKinsey & Co.
  • Shoukat Dhanani, CEO of Sugar Land-based Dhanani Group Inc., a family owned and operated business conglomerate
  • Lorin Gu, founding partner of Recharge Capital and the founding chair of the Global Future Council at the Peterson Institute of International Economics
  • Earl Hesterberg, former CEO of Group 1 Automotive and former group vice president of North America marketing, sales and service for Ford Motor Co., who is currently chairing the capital campaign at Kids Meal Inc. in Houston.
  • Robert T. Ladd, chairman and chief executive of Stellus Capital Investment Corp. who is also chairman of the board of trustees of Rice and a member of the advisory council for the UT Health's McGovern Medical School
  • Frank Liu, co-founder and co-owner of Lovett Industrial and the founder and owner of Lovett Commercial, Lovett Homes and InTown Homes
  • Charlie Meyer, CEO of Lovett Industrial who formerly served as managing director at Hines Interests in Houston and director of construction and development for NewQuest Properties. He currently serves on the board of directors for Generation One and NAIOP Houston.
  • Hong Ogle, president of Bank of America Houston and Southeast/Southwest Division Executive for Bank of America Private Bank who serves on the board of Greater Houston Partnership and Central Houston Inc. and chairs the Bank of America Charitable Foundation in Houston.
  • Annise Parker, Houston’s 61st mayor who is currently CEO of the Victory Fund, a nonprofit devoted to electing pro-equality, pro-choice LGBTQ+ leaders to public office
  • Gary Stein, CEO of Triple-S Steel Holdings who serves on the American Institute of Steel Construction Board and the MD Anderson Cancer Center Board of Visitors

Over the summer, Lilie and Rice's Office of Innovation also announced its 2023 cohort of Innovation Fellows. The program, open to Rice faculty and doctoral and postdoctoral students, provides support to move innovation out of labs and into commercialization and up to $20,000 in funding.

Earlier this year, Lilie also launched a new startup accelerator program for students called the Summer Venture Studio, which ran from May through August.
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Amazon's robotaxi service Zoox rolls out in 'sprawling' Houston market

On the Road

Amazon-owned robotaxi ride-hailing service Zoox is zooming into Houston in September, becoming the latest robotaxi operator jockeying for local riders.

Initially, self-driving retrofitted SUVs with safety drivers on board will serve downtown Houston, centrally located tourist hotspots, and certain residential neighborhoods. The SUVs will test Houston roads before Zoox rolls out autonomous robotaxis here, the company says.

Zoox takes Houston for a test drive

At the outset, Zoox says, a limited number of vehicles will be driven by people to gather data about Houston roads.

Zoox test drive Photo courtesy of Zoox

“This helps create a detailed picture of each street, from road geometry to traffic lights,” the company says. “Once we have mapped out an area, we will test autonomous driving capabilities. Safety and operational readiness govern the pace of our rollout.”

Zoox says its robotaxi differs from vehicles operated by other ride-hailing services.

The all-electric robotaxi “is purpose-built for autonomous ride-hailing and designed for riders from day one,” the company says. “It has no traditional driving controls and instead has carriage-style seating, sliding glass doors, and features that let the rider personalize their journey.”

To help manage the fleet, Zoox plans to open a depot in Houston for vehicle charging and maintenance, a representative says via email.

Along with Houston, Zoox is launching this month in San Diego. The ride-hailing service already operates in Austin, Dallas, Atlanta, Las Vegas, Los Angeles, Miami, Phoenix, the San Francisco Bay Area, Seattle, and Washington, D.C.

Zoox breaks into “sprawling” Houston market

Zoox describes Houston as its “most sprawling market to date.”

“Driving here means navigating complex service-road networks, unique merging scenarios, and challenging environmental conditions, including severe heat, heavy rain, and urban flooding,” the company says. “It’s a rigorous test of our technology across geography and terrain.”

Zoox will join two other autonomous ride-hailing services in Houston:

  • Waymo began rolling in Houston in February. Alphabet, the parent company of Google, owns Waymo.
  • Electric vehicle manufacturer Tesla began offering robotaxi services earlier this year.

A third Zoox competitor is arriving within the next year. A partnership comprising rideshare provider Uber, EV manufacturer Lucid, and autonomous technology company Nuro plans to launch a robotaxi service in Houston by mid-2027.

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This article originally appeared on CultureMap.com.

Houston energy giant Shell lists local headquarters for sale for $325M

On the Market

Energy giant Shell has put its U.S. headquarters in Houston’s Energy Corridor on the market and is exploring the sale of its U.S. chemical business.

Green Street News reported Shell just listed its longtime Energy Corridor campus at 150 N. Dairy Ashford Road. The asking price is $325 million, The Real Deal reported. Shell plans to lease back half of the nearly 1.5 million-square-foot Woodcreek campus for 15 years.

A sale-leaseback deal could transform the 43.6-acre campus into a multitenant hub, CoStar News reported.

“Houston is a critical hub for Shell globally and the headquarters of our U.S. businesses,” a Shell spokesperson told the Houston Business Journal. “We remain committed to Houston and are evaluating opportunities to optimize our Woodcreek campus as part of our ongoing review of workplace needs while maintaining a strong presence in the city.”

Shell occupied its first building at the West Houston campus in 1980. The company employs more than 6,000 people in Texas.

Shell is one of the highest-profile businesses occupying space in the Energy Corridor. It’s home to 67,000 workers, more than 27 million square feet of office and mixed-use space, and 3.8 million square feet of retail and restaurant space.

Shell considers $8B sale of chemical business
As the company seeks to unload its Woodcreek campus, The Financial Times reported Shell is looking into selling its U.S. chemical business. The price tag: $8 billion.

Potential buyers include Spring-based ExxonMobil and Houston-based LyondellBasell.

Shell operates four chemical plants in Texas, Louisiana and Pennsylvania, producing an array of chemicals for use in plastics, detergents and pharmaceuticals.

Shell CEO Wael Sawan said last year that the company had spent $45 billion in capital “that is underperforming for us,” split between its chemical business and renewable energy arm.

Shell also agreed to sell its solar and wind power business in India this summer. Read more here.

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This article originally appeared on EnergyCapitalHTX.com.

10+ can't-miss Houston business and innovation events for September

where to be

The energy transition and AI will be the talk of this town this month, thanks to a packed calendar of Houston events. September brings the return of Houston Energy and Climate Startup Week and some of its signature anchor events, plus AI conferences and talks exploring how the technology is impacting everything from healthcare to leadership. Here’s what not to miss and how to register. Please note: this article may be updated to add more events.


Sept. 3 — Entrepreneurship Roundtable with Open

Open Houston and the Ion present this roundtable event to bring together founders, builders, and innovators at various stages of venture development. This month's session will feature Faisal Bhutto, president and CEO of Houston-based AI and tech consulting firm Alykas.

This event is Thursday, Sept. 3, from 10-11:30 a.m. at the Ion. An optional lunch ticket is available for purchase. Register here.

Sept. 3 — AI Operator Spotlight: Houston’s Top AI Leaders Open Their Playbooks

The Houston AI Club, Allenix, the Ion District and Collide are bringing together industry leaders to share their expertise and first-hand experiences building AI companies. The event will feature a panel with Chuck Yates, co-founder of Collide, and Charles Jessup, senior manager of AI fluency at Raytheon, plus an open networking session.

This event is Thursday, Sept. 3, from 5:30-8 p.m. at the Ion. Register here.

Sept. 8 — The Technology Leadership Advantage Series – For CEOs, VCs and PE Firms

Ram Prasad, CEO of Houston-based IT consulting firm Delence, will explore the role of leadership in turning AI investments into business value during the latest installment of this series at the Ion. The event will explore why AI strategies often fail before the technology does and how companies should approach AI ownership, governance, investment and accountability.

This event is Tuesday, Sept. 8, from noon-1 p.m. at the Ion. Register here.

Sept. 14–18 — Houston Energy and Climate Startup Week

Houston Energy and Climate Startup Week returns for its third year, with panels, happy hours and pitch days focused on the energy transition. See the schedule of events here. The week will begin with a kickoff block party and open house at the Ion.

This event starts Monday, Sept. 14. The Ion District will host many of the week's events. Find more information here.

Sept. 15 — Meet the Activate Houston Cohort 2026 Fellows

Meet Activate's latest cohort, which was named this summer, and learn more about their hardtech and climate-focused solutions. Also meet founders from the organization’s 2025 cohort during Houston Energy and Climate Startup Week.

This event is Tuesday, Sept. 15, from 5-7 p.m. at the Ion. Register here.

Sept. 15 – Cypher Pilotathon and Startup Showcase

Grab coffee and take in keynotes and panels featuring leaders from Amperon, Aramco Ventures, New Climate Ventures, Syzygy Plasmonics and many others during this signature event, this year under the theme “The NEW Energy Industrial Revolution.” After lunch, hear pitches from 31 ventures during the Pilotathon. This year's event will also feature a startup showcase with interactive booths where attendees can meet founders and see demonstrations, plus an industry hub where corporates and investors can engage with emerging technologies and identify the pilots they want to move forward with.

This event is Tuesday, Sept. 15, from 9 a.m.-5 p.m. at POST Houston. Get tickets here.

Sept. 15-17 — The AI in Health Conference

Rice University's Ken Kennedy Institute will present this future-focused event, aimed at bridging the gap between artificial intelligence and real-world health outcomes. The event will feature panels with leaders from institutions and companies from around the world, plus technical talks, poster presentations and networking receptions.

This event begins Tuesday, Sept. 15 at 8 a.m. at the BRC at Rice University. Register here.

Sept. 16 — Greentown Labs Climatech Summit

Entrepreneurs, investors, corporate leaders, policymakers and philanthropists will head to Houston this month for the annual Greentown Climatetech Summit. Hear from Greentown CEO Georgina Campbell Flatter and keynote speaker Tim Latimer, CEO and co-founder of Houston geothermal unicorn Fervo Energy, plus numerous other engaging panels at the Ion. Then head to Greentown Labs for an open house and startup showcase, where attendees can meet some of the climatech incubators' members, before taking in the startup pitch competition followed by happy hour over at the Continental Club.

This event is Wednesday, Sept. 16, from 8 a.m.–9 p.m. at multiple locations. Register here.

Sept. 18 — Rice Alliance Energy Tech Venture Forum

Hear from clean energy startups from around the world at the 23rd annual Energy Tech Venture Forum. In addition to the pitches, this event will also host keynotes from Sean Maher, chief economist at Phillips 66, and Ira Ehrenpreis, founder and managing partner of DBL Partner. Panels will focus on technologies, infrastructure and commercialization strategies needed to deploy breakthrough innovations at scale. Following the event, the Rice Alliance will also name its annual “Most Promising” startup.

This event is Thursday, Sept. 17, from 7:30 a.m.-5 p.m. at Rice University’s Jones Graduate School of Business. Register here.

Sept. 23 – Houston Methodist Innovation Discussion

Houston Methodist presents its latest Innovation Discussion this month for the Houston health IT community. This month's event will feature Dr. Jordan Dale, chief medical information officer and chief health AI officer at Houston Methodist, and Ginny Torno, executive director of innovation and IT clinical, ancillary and research systems for Houston Methodist. The two will share insights into Houston Methodist’s innovation strategy and approach to scaling new ideas, plus real-world lessons on AI adoption and more.

This event is Wednesday, Sept. 23, from 5:30-7 p.m. at the Ion. Register here.

Sept. 23 — UH Energy Career Fair

Find your next job or team member at UH's energy-focused career fair. The event will feature companies from the fossil fuels, electrical power, nuclear power and renewables industries; plus nonprofits, governmental agencies and startups. And though the event is geared toward business, engineering, technology and science majors, it is open to students of all majors.

This event is Wednesday, Sept. 23, from 11 a.m.-2 p.m. at the UH Student Center. Find more information here.

Sept. 30 — First Principles Tech Talk: From Orbit to the Lunar Surface

Head to the Ion for the first-ever First Principles Tech Talk. This event will feature short talks and moderated discussions geared toward founders, engineers and operators in the commercial space industry. The inaugural event will feature Megan Ortiz and Zach Paugh from Houston-based Axiom Space.

This event is Wednesday, Sept. 30, from 5-7 p.m. at the Ion. Register here.

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