Houston XR training company lands $5.8M contract with Air Force

taking flight

HTX Labs has been awarded a contract with the U.S. Air Force to develop a virtual AI-powered classroom for workers who maintain the Boeing KC-135’s F108 engine. Photo via Getty Images.

The U.S. Air Force’s AFWERX innovation arm has picked Houston-based HTX Labs to provide AI-enabled immersive training for workers who maintain Boeing KC-135 refueling tankers.

HTX Labs, an extended reality (XR) company and provider of immersive training programs for U.S. armed forces, will receive as much as $5.8 million in military funding for this project.

The new initiative comes on the heels of HTX Labs completing the second phase of a virtual KC-135 maintenance training program in partnership with Mildenhall, a Royal Air Force station in England. HTX Labs received Small Business Innovation Research (SBIR) funding for the second-phase project.

Under the new initiative, part of its EMPACT training platform, HTX Labs will develop a virtual AI-powered classroom for workers who maintain the KC-135’s F108 engine. In conjunction with this project, HTX Labs will collaborate with the Maine Air National Guard’s 101st Air Refueling Wing Maintenance Squadron on improving EMPACT.

Major Ryan Wing of the Maine Air National Guard says KC-135 maintenance workers “have limited opportunities to perform some of the more complex aircraft and engine repairs in a training environment. Providing immersive training to our warfighters is essential to ensuring mission readiness.”

In January, HTX Labs tapped Brian Reece as vice president of strategic accounts for the Air Force. In this role, he oversees HTX Labs’ relationship with this military branch. Reece is a retired Air Force colonel.

In 2022, Dallas-based Cypress Growth Capital invested $3.2 million in HTX Labs, which was founded in 2017.

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Lori-Lee Elliott of Dauntless XR joins the Houston Innovators Podcast to share about her tech company's evolution. Photo via LinkedIn

Houston innovator tackles rebrand, federal grant programs to take XR startup into its new era

HOUSTON INNOVATORS PODCAST EPISODE 221

As Lori-Lee Elliott was building out her company — an augmented reality software company to enhance industrial workflow — she was approached by a representative in the Air Force interested in her technology. That conversation would end up leading to a major rebrand and pivot, as well as multiple federal contracts and grants for the Houston startup.

Dauntless XR — originally founded as Future Sight AR in 2018 — has two software platforms that bring customers flexible mixed reality solutions. The Air Force uses the Aura platform to create 3D replays of missions, while NASA plans to utilize the technology for analyzing space weather data.

"Something that we realized when we built out this platform is that it doesn't have to be for just one thing," Elliott says on the Houston Innovators Podcast. "We can make it ingest all kind of data sources. It does require us as the developers and the architects to go in and learn about each application. And that's great because I get bored easily and it's an endless source of fascination."



After entering into these new industries — as well as a 2022 strategic acquisition — Elliott says her team started thinking hard about a rebrand, specifically to set the business up for success as it expands into new fields and opportunities.

"We wanted something that was a name that was a little bit more future proof," Elliott says on the show. "We wanted something that was more representative of this new thing that we had evolved into, and then also something that was going to stand the test of time going forward. We actually really enjoyed the rebrand process."

While Elliott had to learn how to navigate a rebrand, she also juggled the grant and contract process with federal entities — something else that was new to her. Dauntless XR has secured both SBIR and STTR grants and contracts with two different federal agencies, so Elliott has learned a lot.

"The lesson learned I would say is if you're interested in pursuing (grants), go and get all of your government registrations and certifications before you start," Elliott says. "They have fairly quick close deadlines, so when an opportunity opens to when it closes is usually a month. And that is not enough time to register your company at all of the different places it needs to be registered."

She shares more about what she's learned through the past few years or so, as well as what's next for Dauntless XR on the podcast.

"We are no longer limited by the laws of physics." Photo via Getty Images

Houston expert: How extended reality and the metaverse can disrupt the business world

guest column

The year is 2012. It’s your first day of a new job. You wake up extra early to get ready and drive to the office – which takes you another half hour with Houston traffic. Once you arrive, you wait in the lobby for someone to help you with badging, sit in the same room for hours while numerous facilitators click through slides, and find out your laptop won’t be available for another week or two. Not the warmest welcome or greatest impression, right?

Fast-forward to year 2022. It’s a week before you’re set to start a new job. You receive an exciting package in the mail and unbox your new joiner start kit, complete with a virtual reality headset and other company swag. You onboard completely in the metaverse, meeting and collaborating with teammates from around the world – all from the comfort of… wherever.

Especially in a time where being physically together may not be an option, extended reality has made people feel closer than ever before.

To level set, XR is the umbrella term encompassing any immersive technology that blends digital content with the real world. It covers the full spectrum of experiences ranging from augmented reality, where digital content is superimposed and simple instructions appear directly on your phone or smart glasses, to an entirely virtual world where people, places and things co-exist and interact with one another in new, computer-generated environments – also known as the metaverse.

Although XR has been around for decades, the lack of devices and standard software platforms made implementation a challenge. Now that both are widely available and affordable, the doors for innovation have been thrown wide open.

There’s been plenty of key drivers that led to XR being a hot topic right now, including:

  • The need for digitization of our lives, accelerated by the global pandemic.
  • The recent global focus on sustainability and responsible business.
  • The cross-industry commitment to customer journey, optimized employee performance, and creating new content and services.
  • The convergence of powerful advancements in technology, such as 5G, cloud, AI and blockchain.
  • The recent investment in the metaverse by companies like Microsoft and Meta, formerly known as Facebook.

Now is the time for XR.

Every industry can benefit from using immersive technology to enhance both the enterprise and consumer experience, from retail, finance and automotive to tourism, entertainment, and real estate. XR has a proven track record of increasing revenue, collaboration, and productivity and decreasing costs, safety incidents, and our carbon footprint.

By 2027 the VR gaming market size alone is projected to reach $92.31 billion, and we’re now starting to really blur the lines between gaming and training. Compared to in-person training, VR results in a 96 percent reduction in training time, 76 percent increase in learning effectiveness, 70 percent increase in productivity, and 30 to 70 percent decrease in costs.

Engineers can leverage digital twins of manufacturing facilities for product development, performance improvement and predictive maintenance.

Science classes can teleport to outer space and use haptics to feel the ice and rock that make up the rings of Saturn.

Surgeons and patients can take a three-dimensional tour of the brain before surgery, leading to better preparation, decreased operative time and reduced risk of complications.

Those suffering from dementia can recover certain motor skills or tap into old memories to trigger positive mental stimulation, aiding in both assessment and rehabilitation.

As the new fabric of life is unfolding, the metaverse is showing promise beyond its gaming roots to offer people and brands a new place to interact, create, consume and earn.

Despite spending an average of $1,300 per employee annually on training, research proves that learners forget 70 percent of the content within 24 hours and nearly 90 percent in a month. By extending reality, we engage learners with interactive, hands-on, experiences that transform one-way training into deeper learning with heightened retention.

When high-fidelity design is mixed with low latency technology enablers, XR environments intuitively engage our senses, capturing the experience as an actual memory in our brain versus something we simply read or watched.

The future is immersive technology – not only for how we work and learn but also how we exercise and have fun. XR will touch all aspects of our lives. That’s why at Accenture, we have launched a grand experiment to make enterprise virtual reality a… well, a reality. We’re currently amid the world’s largest VR deployment in history. We are deploying over 60,000 VR headsets to our people to experiment, innovate, and learn with VR.

We as a company have over 650,000 employees and have over 200,000 new joiners annually. About one third of those people joined the company during the pandemic – over 50,000 this past quarter alone. That means a good portion of our people have never set foot in our offices, let alone met any of their teammates in person.

Through the power of VR, we now have a consistent and scalable new joiner experience that inspires our people, aligns with our purpose, and equips them to learn, live and love Accenture from day one. VR gives us the opportunity to make meaningful connections and share a sense of belonging. Our people can now head to the “Nth Floor” to meet new people from all over the world and have those natural water cooler moments – even while working remotely.

In a time where live events are facing a standstill, platforms like AltspaceVR are hosting live events for everything from Burning Man and Diplo concerts to church and AA meetings. The spatial recognition offered by VR makes it a great medium to have one-to-one, one-to-many, or many-to-many interactions.

Accessibility is key too. That’s why many applications offer experiences in both VR headset and 2D on PCs.

We are no longer limited by the laws of physics.

Extended reality creates a powerful sense of presence that we as a collective society have been missing these past two years. If we’ve learned anything from this pandemic, it’s that human connection is key to mental wellness and innovation.

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Krista L. Taylor is the immersive learning lead at Accenture.

The solution to Houston's workforce problem might be right in front of our eyes. Getty Images

Developments in virtual reality technology are changing the workforce, say Houston experts

XR express

Everyone's job has training associated with it — from surgeons to construction crane operators — and there's a growing market need for faster, more thorough training of our workforce.

"The best way to learn how to do something, is to just get out and do it," says Eric Liga, co-founder of HoustonVR. "But there are a lot of reasons why you can't do that in certain types of training."

Augmented and virtual reality training programs are on the rise, and Liga cites safety, cost, and unpredictable work environments as some of these most obvious reasons reasons to pivot to training employees through extended reality. This type of training also provides portability and has proven higher retention, Liga says in his keynote speech at Station Houston's AR/VR discuss on April 25.

"You get a much higher retention rate when you actually go out and do something — physically going through the motions — than you do sitting in a classroom or reading a book," he says.

As more companies are introducing this type of technology into the workforce, there's a growing need for developers and experts to design these programs. Currently, it's rare for a company to have employees with XR expertise.

"Working on commercial accounts, I see a lot of customers who have done enterprise software — web pages and forums — but it's a very different skill set from simulations," says Jared Bienz, senior software engineer at Microsoft.

So, companies are faced with hiring developers and designers to create these training programs. Ethan LeSueur, who oversees immersive technology at ExxonMobil, says his team benefitted from the cut-throat game design industry. So many developers want to go into video game creation, but there's not enough jobs. At Exxon, developers get to create games — but for training purposes. LeSueur says he looks for a diversity of programming experience when hiring for these types of jobs.

"It's important to not have one skill set," he says. "We're looking for the people who are sort of a swiss army knife. You don't have to know everything, but if they have more than one specific skill set, that's really important."

But hiring a team might not be the only option to AR/VR development. Working with startups has been an avenue for major companies seeking out XR programs.

"People talk about digital transformation all the time, but half the time we wouldn't know what that looked like if that slapped us in the face," LeSueur says. "That's what we're asking startups to do — help slap us in the face."

LeSueur says that proving cost effectiveness is extremely important for startups looking to win big companies as clients, but so is passion. The complexity of the process as well as all the red tap of business calls for passion from a startup.

"We're trying to take a complicated physical process and digitize it," LeSueur says. "That means there's going to be a lot of back and forth."

From the startup perspective, it's not always easy working with major corporations – especially within oil and gas. Amanda, who works with construction clients and larger companies as an instructor at ITI, recommends having someone on the inside to look out for you.

"I think it's really important to have an internal champion who really owns the product and wants to see it through to its last degree of integration."

On display

Courtesy of Station Houston

After the panel, Station Houston VR companies showed off their programming.

Over half of Houston business leaders say their company has already enabled AI, blockchain, and extended reality technology. Getty Images

Business leaders in Houston have a surprisingly high tech adoption rate

Early bird gets the worm

When it comes to enabling new technologies to advance business practices, Houston business leaders are ahead of the curve. According to a new study, the majority of the companies surveyed are already using artificial intelligence, blockchain, and extended reality today.

The global study, Technology Vision 2019, was conducted by Accenture and included surveys from 6,600 business and IT executives around the world, including 100 in Houston. Dallas was the only other Texas market surveyed, along with nine other major United States metros — Atlanta, Boston, Chicago, Detroit, Minneapolis, New York City, San Francisco, Seattle, and Washington D.C.

Of the 100 respondents, 91 said that innovation efforts have accelerated within their organization over the past three years because of new technology, and 80 said that while they feel their employees are digitally savvy, they are "waiting" for the company's technology to catch up. However, when it comes to the need to reskill employees due to emerging tech in the workplace, 47 percent says that need will happen within the next two years.

The survey also focused on three distinct technologies — AI, blockchain, and extended reality, which includes augmented reality, virtual reality, and mixed reality. XR responses indicate that 66 percent of business leaders have already used some sort of version of XR either in one or more of their business units (37 percent) or are piloting the technology (29 percent).

The numbers for adoption for AI is similar, with 65 percent of leaders saying they have introduced AI tech in the workplace already —nearly 2 in 5 have already adopted somewhere within the company, while over 1 in 4 say their company has an AI pilot program.

Blockchain, according to the study, falls further down the spectrum in Houston companies. Only 15 percent of the companies have a pilot program, but 42 percent have blockchain technology already in use in one or more business units — for a total of 57 percent adoption rate.

With 5G on the horizon, almost all respondents — 79 percent — say the technology is going to revolutionize their industry in terms of how they provide products or services to their clients. Almost half said that impact will happen and jobs will be altered within the next three years.

Brian Richards, managing director at Accenture, oversees the company's Houston Innovation Hub. The hub welcomes in business leaders who are utilizing Accenture's services to ideate and then implicate innovative technologies. At a recent panel in the Accenture office, Richards spoke to emerging tech in Houston and said there's been no shortage of leaders wanting to move the needle on new tech.

"I've never seen [corporations] more motivated than they are right now to be able to think differently on how they are able to engage Houston," he said.

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MD Anderson makes AI partnership to advance precision oncology

AI Oncology

Few experts will disagree that data-driven medicine is one of the most certain ways forward for our health. However, actually adopting it comes at a steep curve. But what if using the technology were democratized?

This is the question that SOPHiA GENETICS has been seeking to answer since 2011 with its universal AI platform, SOPHiA DDM. The cloud-native system analyzes and interprets complex health care data across technologies and institutions, allowing hospitals and clinicians to gain clinically actionable insights faster and at scale.

The University of Texas MD Anderson Cancer Center has just announced its official collaboration with SOPHiA GENETICS to accelerate breakthroughs in precision oncology. Together, they are developing a novel sequencing oncology test, as well as creating several programs targeted at the research and development of additional technology.

That technology will allow the hospital to develop new ways to chart the growth and changes of tumors in real time, pick the best clinical trials and medications for patients and make genomic testing more reliable. Shashikant Kulkarni, deputy division head for Molecular Pathology, and Dr. J. Bryan, assistant professor, will lead the collaboration on MD Anderson’s end.

“Cancer research has evolved rapidly, and we have more health data available than ever before. Our collaboration with SOPHiA GENETICS reflects how our lab is evolving and integrating advanced analytics and AI to better interpret complex molecular information,” Dr. Donna Hansel, division head of Pathology and Laboratory Medicine at MD Anderson, said in a press release. “This collaboration will expand our ability to translate high-dimensional data into insights that can meaningfully advance research and precision oncology.”

SOPHiA GENETICS is based in Switzerland and France, and has its U.S. offices in Boston.

“This collaboration with MD Anderson amplifies our shared ambition to push the boundaries of what is possible in cancer research,” Dr. Philippe Menu, chief product officer and chief medical officer at SOPHiA GENETICS, added in the release. “With SOPHiA DDM as a unifying analytical layer, we are enabling new discoveries, accelerating breakthroughs in precision oncology and, most importantly, enabling patients around the globe to benefit from these innovations by bringing leading technologies to all geographies quickly and at scale.”

Houston company plans lunar mission to test clean energy resource

lunar power

Houston-based natural resource and lunar development company Black Moon Energy Corporation (BMEC) announced that it is planning a robotic mission to the surface of the moon within the next five years.

The company has engaged NASA’s Jet Propulsion Laboratory (JPL) and Caltech to carry out the mission’s robotic systems, scientific instrumentation, data acquisition and mission operations. Black Moon will lead mission management, resource-assessment strategy and large-scale operations planning.

The goal of the year-long expedition will be to gather data and perform operations to determine the feasibility of a lunar Helium-3 supply chain. Helium-3 is abundant on the surface of the moon, but extremely rare on Earth. BMEC believes it could be a solution to the world's accelerating energy challenges.

Helium-3 fusion releases 4 million times more energy than the combustion of fossil fuels and four times more energy than traditional nuclear fission in a “clean” manner with no primary radioactive products or environmental issues, according to BMEC. Additionally, the company estimates that there is enough lunar Helium-3 to power humanity for thousands of years.

"By combining Black Moon's expertise in resource development with JPL and Caltech's renowned scientific and engineering capabilities, we are building the knowledge base required to power a new era of clean, abundant, and affordable energy for the entire planet," David Warden, CEO of BMEC, said in a news release.

The company says that information gathered from the planned lunar mission will support potential applications in fusion power generation, national security systems, quantum computing, radiation detection, medical imaging and cryogenic technologies.

Black Moon Energy was founded in 2022 by David Warden, Leroy Chiao, Peter Jones and Dan Warden. Chiao served as a NASA astronaut for 15 years. The other founders have held positions at Rice University, Schlumberger, BP and other major energy space organizations.

Houston co. makes breakthrough in clean carbon fiber manufacturing

Future of Fiber

Houston-based Mars Materials has made a breakthrough in turning stored carbon dioxide into everyday products.

In partnership with the Textile Innovation Engine of North Carolina and North Carolina State University, Mars Materials turned its CO2-derived product into a high-quality raw material for producing carbon fiber, according to a news release. According to the company, the product works "exactly like" the traditional chemical used to create carbon fiber that is derived from oil and coal.

Testing showed the end product met the high standards required for high-performance carbon fiber. Carbon fiber finds its way into aircraft, missile components, drones, racecars, golf clubs, snowboards, bridges, X-ray equipment, prosthetics, wind turbine blades and more.

The successful test “keeps a promise we made to our investors and the industry,” Aaron Fitzgerald, co-founder and CEO of Mars Materials, said in the release. “We proved we can make carbon fiber from the air without losing any quality.”

“Just as we did with our water-soluble polymers, getting it right on the first try allows us to move faster,” Fitzgerald adds. “We can now focus on scaling up production to accelerate bringing manufacturing of this critical material back to the U.S.”

Mars Materials, founded in 2019, converts captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. Investors include Untapped Capital, Prithvi Ventures, Climate Capital Collective, Overlap Holdings, BlackTech Capital, Jonathan Azoff, Nate Salpeter and Brian Andrés Helmick.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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