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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Houston company partners on AI-powered medical support for space missions

AI in space

Houston-based Aexa Aerospace has partnered with SpacePort Australia (SPA) to build medical AI solutions for space crews.

Known as The Hamilton Project, the collaboration aims to complete the training and refinement of a “deductive medical AI model” designed to aid and treat astronauts and space travellers. With limited to no real-time access to doctors on Earth during space missions, the project's goal is to create an AI model that would serve as a medical resource.

“‘The Hamilton Project’ is a sophisticated AI model, integrating academic and clinical knowledge in a unique way,” Aexa founder and CEO Feranando De La Peña Llaca said in a news release. “It is paving the way for future autonomous attending.”

The project is named after NASA flight surgeon Dr. Douglas Hamilton, who participated in 50 missions.

SPA, an independent research organization, will bring its practical medical knowledge and clinical experience to The Hamilton Project, which builds on Australia’s rural and remote medical training programs. SPA founder Dr. Gabrielle Caswell brings 20 years of remote medicine experience that SPA believes will help address the issues that could be encountered in space.

“Rural general practitioners in Australia practice ‘pre-cradle to grave’ medicine, including areas considered sub-specialities in most western countries: OBYN, paediatrics, trauma management, anaesthetics, general surgery, mental health and geriatrics,” Caswell added in the release. “This broad clinical skill set encompasses all stages and phases of human life. And importantly practitioners are also trained in the management of severe trauma. "It is anticipated that doctors and medical staff will become embedded into missions, and all these skills will be required over time, to create successful space economic zones.”

Aexa Aerospace’s previous work includes developing holographic medical devices that have been trialled on the International Space Station. Read more here.

Houston residents rank economy as biggest problem, new Kinder survey shows

by the numbers

The region’s economy tops the list of concerns of Houston-area residents surveyed by Rice University’s Kinder Institute for Urban Research.

Respondents in the Kinder Houston Area Survey, which questioned nearly 9,000 residents of Harris, Fort Bend and Montgomery counties, cite the regional economy as the area’s “biggest problem.”

Shrinking confidence in job opportunities and growing household financial pressures fueled the grim economic outlook:

  • The share of residents rating job prospects as “good” or “excellent” fell by more than 25 percentage points, the sharpest single-year decline since the 1980s.
  • Seventy-nine percent of those earning less than $25,000 said they’d be unable to cover an unplanned $400 expense. That was up from 72 percent last year. In the $50,000-to-$99,999 category, the figure was 39 percent, up from 30 percent last year.
  • More than 20 percent of residents said their financial status was worse than it was 12 months earlier.

“These challenges were particularly notable among lower- and middle-earning households,” according to a report about the survey.

Dan Potter, co-director of the institute’s Houston Population Research Center, says the annual survey “provides community leaders and the public with a map of where we’ve been on key issues, where we are now, and what’s of looming importance. It allows everyone to work together toward a better future for our city and our region.”

Houston-based Oxy officially announces CEO transition, names successor

Team Transition

Houston-based Occidental (Oxy) has officially announced its longtime CEO's retirement and her successor.

Oxy shared that Vicki Hollub will retire June 1. Reuters first reported Hollub's plan to retire in March, but a firm date had not been set. Hollub will remain on Oxy's board of directors.

Richard Jackson, who currently serves as Oxy's COO, will replace Hollub in the CEO role.

“It has been a privilege to lead Occidental and work alongside such a talented team for more than 40 years," Hollub shared in a news release. "Following the recently completed decade-long transformation of the company, we now have the best portfolio and the best technical expertise in Occidental’s history. With this strong foundation in place, a clear path forward and a leader like Richard, who has the experience and vision to elevate Occidental, now is the right time for this transition. “I look forward to supporting Richard and the Board through my continued role as a director.”

Hollub has held the top leadership position at Oxy since 2016 and has been with the energy giant for more than 40 years. Before being named CEO, she served as COO and senior executive vice president at the company. She led strategic acquisitions of Anadarko Petroleum in 2019 and CrownRock in 2024, and was the first woman selected to lead a major U.S. oil and gas company.

Hollub also played a key role in leading Oxy's future as a "carbon management company."

Jackson has been with Oxy since 2003. He has held numerous leadership positions, including president of U.S. onshore oil and gas, president of low carbon integrated technologies, general manager of the Permian Delaware Basin and enhanced oil recovery oil and gas, vice president of investor relations, and vice president of drilling Americas.

He was instrumental in launching Oxy Low Carbon Ventures, which focuses DAC, carbon sequestration and low-carbon fuels through businesses like 1PointFive, TerraLithium and others, according to the company. He also serves on the Oil and Gas Climate Initiative’s Climate Investment Board and the American Petroleum Institute’s Upstream Committee. He holds a bachelor's degree in petroleum engineering from Texas A&M University.

Jackson was named COO of Oxy in October 2025. In his new role as CEO, he will also join the board of directors, effective June 1.

“I am grateful to be appointed President and CEO of Occidental and excited about the opportunity to execute from the strong position and capabilities that we built under Vicki’s leadership,” Jackson added in the release. “It means a lot to me personally to be a part of our Occidental team. I am committed to delivering value from our significant and high-quality resource base. We have a tremendous opportunity to focus on organic improvement and execution to deliver meaningful value for our employees, shareholders and partners.”

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This article first appeared on EnergyCapitalHTX.com.

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