This week's roundup of Houston innovators includes Adrianne Stone of Bayou City Startups, Sarma Velamuri of Luminare, and Curtis Jackson of G-Unity Foundation. Photos courtesy

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from health tech to nonprofit — recently making headlines in Houston innovation.

Adrianne Stone, founder of Bayou City Startups

Every month, Adrianne Stone of Bayou City Startups hosts a happy hour for startup founders to create a safe space to network, collaborate, commensurate, and more. Photo courtesy of Adrianne Stone

Adrianne Stone knows firsthand how lonely the startup founder journey is, so she set out to help create a community for founders when she started Bayou City Startups last year. Now, Stone shares on the Houston Innovators Podcast that her monthly happy hours attract over 50 attendees on average.

"Being the venture associate with Capital Factory in Houston, I'd seen what the Houston ecosystem had to offer. There were events — happy hours, coffee meet-ups, all these things," Stone says on the show. "But it was not just a casual networking event usually. I wanted a consistent community where I could show up and say, 'guys, I had the worst week,' to people who got where I was coming from and who could commensurate or lean in and help."

The next opportunity to network with Bayou City Startups is Tuesday, July 18, from 5 to 7 pm at Kirby Ice House. Read more.

Sarma Velamuri, co-founder and CEO of Luminare

Sepsis has been the No. 1 killer hospitals, but this Houston startup has a tech to help mitigate the risk. Photo via Getty Images

When he was an internal medicine physician, Sarma Velamuri watched helplessly as a friend’s 22-year-old daughter lost her life to sepsis. He had to tell his friend that she would not be coming home.

“There are 300,000-plus people a year who die of sepsis,” says Velamuri. “It’s important that people understand it’s not just those who are most susceptible to infections.”

This fact is not only unfortunate, but preventable. And that’s why Velamuri, who describes himself as “a recovering hospitalist,” co-founded Luminare in 2014. A full-time CEO since 2017, Velamuri, who runs the company with co-founder and CTO Marcus Rydberg, is based in the TMC Innovation Factory. Read more.

Curtis Jackson, founder of the G-Unity Foundation

For the second year, Curtis Jackson's program supported Houston student entrepreneurs. Photo courtesy of G-Unity

Chances are, you've heard of 50 Cent — his 2003 album "Get Rich or Die Tryin'" was a soundtrack to many. But Curtis James Jackson III, 50 Cent's real name, has done a lot since gracing your radios. He moved to Houston in 2021 and founded the G-Unity Foundation. In May, he wrapped on the second year of the G-Unity Business Labs, a business development incubator for Houston Independent School District high schoolers.

"I’ve spent years donating my time and energy to communities in need. I started G-Unity to do the same—to give back to kids so they have it a little easier than I did," Jackson writes on the website. "Team building and entrepreneurship are skills I learned along the way, but they are so important to develop early. I look forward to G-Unity supporting programs that are doing the crucial work of teaching kids to excel at life."

Around 150 students participated, and the winners are splitting a $500,000 investment. Read more.

For the second year, Curtis Jackson's program supported Houston student entrepreneurs. Photo courtesy of G-Unity

50 Cent's Houston entrepreneurship program wraps with $500,000 investment into student-founded companies

student hustlers

The 50 Cent-backed high school entrepreneurship program wrapped up its second year of operation after helping over 100 Houston-area students build their small business plans.

G-Unity Business Labs, sponsored by Curtis James Jackson III — better known as 50 Cent — and Horizon International Group, allowed participants to build their own small businesses from the ground up. This year's cohort featured a variety of businesses, from a Caribbean hot dog food truck to a financial literacy course on personal finance.

In its second year, the program encouraged innovation and taught business acumen to entrepreneurial-minded high school students, culminating in an opportunity to create their dream companies. During this 28 week entrepreneurial internship program, around 150 students from Madison, Worthing, Yates, Kashmere, Booker T. Washington, and Wheatley high schools learned how to transform an idea they were passionate about into a full fledged product they can pitch to investors.

The after-school program consists of three stages – the first 20 weeks are about getting familiar with business concepts and building connections with peers and teacher volunteers. The next eight weeks are spent in the incubation phase as students are split up into teams and local entrepreneurs lead lessons, helping them workshop their ideas into a fleshed out corporation, before finally the teams compete in Hustle Tank, where students pitch their ideas to a panel of celebrity and entrepreneurial judges. At the event in May, the panel included 50 Cent and Mattress Mack. The five winning teams are now eligible to split $500,000 in seed money for their companies.

Summer Reeves, VP of design of Umbridge, is in charge of managing the incubation phase and said she has noticed a significant shift in the ideas the student groups have come up with between the two cohorts of the program; the first year saw flashier tech pitches. But during the second year of the program, Reeves said the students sought to address issues they see in their day-to-day lives, including a group who worked to develop support services to aid formerly incarcerated individuals after they are released.

“This year, a lot of students were more on the practical side,” Reeves tells InnovationMap. “We actually had three teams that were focused on mental health apps which I think is a great example of what youth today are really focused on.”

Reeves started off as a mentor to four teams during the incubation phase of the program last year providing students with guidance on how to set up their business plans, create prototypes, and pitch their companies to investors. After three of her teams won the Hustle Tank competition previously, she took over planning the incubation phase and recruiting other local entrepreneurs to act as mentors.

“We give them recommendations on how to pitch and how to frame their pitch but they also have the ability to get creative so we had some students who did short skits — some that did raps and spoken word type things — lots of creativity,” Reeves says.

Patrice Allen, senior manager of G-Unity Business Labs, said they use the students’ individual strengths and creative thought processes to place them into their teams, including asking them in interviews at the beginning of the year to try to sell her a pen to understand their pitching process.

“That’s the question the students always remember,” Allen says. “‘Sell us this pen or pick something out and sell it to us.’ It’s the weirdest thing and they love it.”

In building the teams at each school, Allen worked with educators to make sure every team had students with a variety of communication and planning skills as well as financial awareness. But Allen felt students were most successful when they incorporated their personal interests into their product design. The first place team of Hustle Tank, Caribbean Hot Dog Boyz, was especially emblematic of this mindset as they combined one member's background of selling hotdogs with another’s Caribbean heritage to create a food truck that sells the unexpected combo of oxtail hotdogs.

The first place team of Hustle Tank 2023 was Caribbean Hot Dog Boyz. Photo via @gunitybusinesslab/Instagram

“To actually taste the food that they prepared was phenomenal,” Allen says “I have never ever thought that oxtails on a hotdog would be good but everybody was floored.”

Elizabeth Martin, director of communications and marketing for Horizon who runs the behind the scenes of funding, said students from the winning teams are now working on solidifying their business plans to qualify for the funds from the G-Unity foundation to develop their companies. Martin also said 50 Cent will retain a relationship with these teams, acting with varying levels of involvement depending on his deal with the students as anything from a silent partner to an investor.

“They do not walk home with $500,000 in their back pocket,” Martin explains. “We are investing in (them) — not giving — it’s an investment.”

The future of this program is uncertain as the Texas Education Association’s takeover of HISD is still in its transition phase but Martin advised to keep a lookout for an ABC Nightline interview of 50 Cent discussing G-Unity Business Labs, which is expected to release soon.

"I’ve spent years donating my time and energy to communities in need. I started G-Unity to do the same—to give back to kids so they have it a little easier than I did," Jackson writes on the website. "Team building and entrepreneurship are skills I learned along the way, but they are so important to develop early. I look forward to G-Unity supporting programs that are doing the crucial work of teaching kids to excel at life.

Rob Schapiro of Microsoft joins the Houston Innovators Podcast to discuss DEI initiatives, translating between the tech in the energy sectors, AI, and more. Photo courtesy of Microsoft

Meet the innovator who's leveraging big tech to advance Houston's ecosystem equitably

HOUSTON INNOVATORS PODCAST EPISODE 188

At a glance, Rob Schapiro's resume might not make the most sense. A trained geologist with decades of experience in the energy sector, Schapiro made the move to Microsoft three years ago.

"I saw this disconnect between technology companies and energy companies — they didn't really speak the same language," he says on this week's episode of the Houston Innovators Podcast. "I thought I could help potentially solve this problem and work between the two as a sort of translator."

Now, as Microsoft’s Energy Acceleration Program director and site leader for the company’s Houston office, which is located in the Ion, Schapiro is deeply embedded in Houston's innovation ecosystem and is dedicated to helping advance Houston's role energy transition in a sustainable and equitable way.

Inspired by the murder of George Floyd, Schapiro says he sought out opportunities in his personal life to expand his contribution to the community as an ally, and he became a big brother in Big Brothers Big Sisters. Microsoft, too, is active in supporting the community through partnering with local organizations, including SUPERGirls SHINE Foundation, the G-Unity Foundation Inc., and more.

"This has been one of the most rewarding aspects of my job, that I've had the ability to leverage the might of Microsoft and my own privilege to have an impact on real people," Schapiro says. "Microsoft's mission is to empower every person and every organization on the planet to achieve more, and when you think about how you do that, it's really daunting. We realized that in order to do that, it's going to require a workforce that looks really different than it does today."

Microsoft knows too well the changing workforce, both from a diversity perspective and when it comes to artificial intelligence and other new technology. In its recent Work Trend Index report, the company found that, rather than being afraid of AI replacing jobs, the majority of the workforce is interested in applying AI to mundane tasks.

Schapiro shares more about his view of how AI will affect the workforce, plus what all the energy industry needs to focus on amid the energy transition, on the podcast. He also weighs in on how Houston's innovation ecosystem has evolved and where he hopes it's going. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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Houston lab explores how AI bots can help the elderly

AI for aging

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

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

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

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

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

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

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

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

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

IPO News

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

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

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

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

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

Fantastical plans

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

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

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

AI plays a key role

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

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

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

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

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

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

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

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

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

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Associated Press Technology Writer Matt O'Brien contributed.

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

data findings

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

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

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

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

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

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

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

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

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

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

Read the full report here.