Houston's workforce is at a crossroads of industry challenges and AI opportunities

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This Houston AI expert is calling the city's business leaders to step up when it comes to AI. Photo via Getty Images

Houston's industrial and energy landscapes are at a pivotal juncture. We're witnessing an undeniable gap in technical expertise that's hard to ignore. At the same time, there's a rising wave of artificial intelligence-driven solutions that could be the answer we've been searching for.

The expertise shortfall

Our city has always been the pulse of the energy and industrial sectors. We've grown, we've innovated, and we've set benchmarks for the world. But as we steer ahead, a pressing concern looms large: the dwindling pool of technical expertise. This isn't about not having enough hands-on deck; it's about not having the right hands to navigate our industries' intricate machinery and complex systems. Pipelines, refineries, renewable energy solutions – these are the cornerstones of Houston's legacy, and we need adept professionals to keep pushing boundaries.

AI: The game changer

But here's the thing: Houston isn't just the hub of traditional energy and industrial operations. We're sitting on a goldmine of data, real-world use cases, and the drive to innovate. Enter AI. It's not just tech jargon; it's a tool with untapped potential, waiting to be harnessed.

We have the industry foundation, the data reservoirs, and the prime use cases that make AI not just viable, but indispensable. Houston is uniquely positioned to lead this AI revolution. We're not just talking about implementing AI; we're talking about innovating with AI, tailoring it to our city's and our industry’s needs, and setting a precedent for the global stage. This is where the challenge meets opportunity. We have what it takes to mold AI solutions that can fill the expertise gap and propel our industries to new heights.

Houston's call to action

If there's any city poised to be the epicenter of AI, it's Houston. We've always been pioneers, and this is our chance to solidify our position as global leaders once again. Houston has everything: the industries, the data, the use cases, and most importantly, the ambition. The question isn't whether we can usher in an era of AI-enhanced operations; it's how swiftly we can do it.

Our city is on the brink of something monumental. It's time we leverage AI to not just bridge the expertise gap but to create an industrial future that's resilient, innovative, and unparalleled. So, to industry leaders, stakeholders, and visionaries, here's the pitch: Houston's at a crossroads, and the path we choose now will shape our legacy for decades. It's time we lean into AI, harness its potential, and ensure that our city remains the powerhouse it's always been.

However, this one question remains: Are you, this city's industry leaders, ready to redefine Houston's legacy in the face of an expertise challenge, or will you stick to the status quo and risk stagnation?


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Marty Dytrych is the co-founder and CEO of Industrial Data Labs.

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Industrial Data Labs announced the close of its $1.5 million seed round of funding. Photo via Getty Images

Houston AI startup raises $1.5M seed round of funding

money moves

A Houston startup that's on a mission to transform and expedite data processing for its industrial clients has raised seed funding.

Industrial Data Labs announced this week that it's closed a $1.5 million seed round of funding. The company has created an applied artificial intelligence technology for the pipe, valve, fitting, and flange, or PVF, industry's inside sales team. The terms of the seed round were not disclosed.

"Our groundbreaking AI-Powered Inside Sales Copilot is transforming the way inside sales teams operate in the PVF industry," Marty Dytrych, co-founder and CEO of Industrial Data Labs, says in a news release. "By embedding our solution into existing BOM and MRO workflows, we empower teams to achieve unmatched efficiency, accuracy, and sales performance.”

Dytrych founded the company with COO Aaron deOliveira and CTO Tige Richardson in 2020. Per the release, Industrial Data Labs will use the funding to continue growing to continue delivering its "solutions that enhance efficiency and create new opportunities" within the PVF industry.

The company did not disclose its seed investors, but reported that Marshal Kushniruk is among the investors and is a member of the company's board of directors.

"Industrial Data Labs' innovative application of AI technology has the potential to bring significant transformation to the industrial sales landscape," Kushniruk says in the release. We are thrilled to support their mission and drive impactful change within the PVF industry.”

Mark Janzen is an early investor in Industrial Data Labs.

"Industrial Data Labs is at the forefront of Applied AI solutions in the industrial sector," he adds. "We believe their commitment to delivering unparalleled value to clients through their Inside Sales Copilot will have a lasting impact on the industry.”

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5+ must-know application deadlines for Houston innovators

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Editor's note: As 2026 ramps up, the Houston innovation scene is looking for the latest groups of innovative startups that'll make an impact. A number of accelerators and competitions have opened applications. Read below to see which might be a good fit for you or your venture. And take careful note of the deadlines. Please note: this article may be updated to include additional information and programs.

Did we miss an accelerator or competition accepting applications? Email innoeditor@innovationmap.com for editorial consideration.

2026 HCC Business Plan Competition

Deadline: Jan. 26

Details: HCC’s annual Business Plan Competition (BPC) is an opportunity for proposed, startup and existing entrepreneurs to develop focused plans to start or grow their businesses. Accepted teams will be announced and training will begin in late February and run through early June, with six free, three-hour training sessions. Advising will be provided to each accepted team. Applicants can apply as a team of up to five persons. Finalists will present to to gudges on May 27, 2026. Last year, $26,000 was awarded in seed money to the top five teams. In-kind prizes were also awarded to all graduating teams including free products, services and memberships, with an estimated in-kind value totaling $147,000. Find more information here.

University of Houston Technology Bridge Innov8 Hub (Spring 2026)

Deadline: Jan . 30

Details: UHTB Innov8 Hub’s immersive, 12-week startup acceleration program designed to help early-stage founders launch and scale their technology startups. Selected participants will gain access to expert mentors and advisors, collaborate with a cohort of peers, and compete for cash prizes during our final pitch event. The cohort begins Feb. 16, 2026. The program culminates in Pitch Day, where participants present their ventures to an audience of investors and partners from across the UH innovation ecosystem. Find more information here.

Rice Business Plan Competition 2026

Deadline: Jan. 31

Details: The Rice Business Plan Competition, hosted by the Rice Alliance for Technology and Entrepreneurship, gives collegiate entrepreneurs real-world experience to pitch their startups, enhance their business strategy and learn what it takes to launch a successful company. Forty-two teams will compete for more than $1 million in cash, investments and prizes on April 9-11, 2026. Find more information here.

Rice Veterans Business Battle 2026

Deadline: Jan. 31

Details: The Rice Veterans Business Battle is one of the nation’s largest pitch competitions for veteran-led startups, providing founders with mentorship, exposure to investors and the opportunity to compete for non-dilutive cash prizes. The event has led to more than $10 million of investments since it began in 2015. Teams will compete April 8-9, 2026. Find more information here.

TEX-E Fellows Application 2026-2027

Deadline: Feb. 10

Details: The TEX‑E Fellowship is a hands-on program designed for students interested in energy, climate, and entrepreneurship across Texas. It connects participants with industry mentors, startup founders, investors and academic leaders while providing practical, "real-world" experience in customer discovery, business modeling, and energy-transition innovation. Fellows gain access to workshops, real-world projects, and a statewide network shaping the future of energy and climate solutions. Participants must be a student at PVAMU, UH, UT Austin, Rice University, MIT or Texas A&M. Find more information here.

Greentown Go Make 2026

Deadline: March 10

Details: Greentown Go Make 2026 is an open-innovation program with Shell and Technip Energies. The six-month program is advancing industrial decarbonization by accelerating catalytic innovations. Selected startups will gain access to a structured platform to engage leadership from Shell and Technip Energies and explore potential partnership outcomes, including pilots and demonstrations. They’ll also receive networking opportunities, partnership-focused programming, and marketing visibility throughout the program. The cohort will be selected in May. Find more information here.

Houston startups closed $1.75 billion in 2025 VC funding, says report

by the numbers

Going against national trends, Houston-area startups raised 7 percent less venture capital last year than they did in 2024, according to the new PitchBook-NVCA Venture Monitor report.

The report shows local startups collected $1.75 billion in venture capital in 2025, down from $1.89 billion the previous year.

Houston-based geothermal energy company Fervo Energy received a big chunk of the region’s VC funding last year. Altogether, the startup snagged $562 million in investments, as well as a $60 million extension of an existing loan and $45.6 million in debt financing. The bulk of the 2025 haul was a $462 million Series E round.

In the fourth quarter of last year, Houston-area VC funding totaled $627.68 million. That was a 22 percent drop from $765.03 million during the same period in 2024. Still, the Q4 total was the biggest quarterly total in 2025.

Across the country, startups picked up $339.4 trillion in VC funding last year, a 59 percent increase from $213.2 trillion in 2024, according to the report. Over the last 10 years, only the VC total in 2021 ($358.2 trillion) surpassed the total from 2025.

Nationwide, startups in the artificial intelligence and machine learning sector accounted for the biggest share of VC funding (65.4 percent) in 2025, followed by software-as-a-service (SaaS), big data, manufacturing, life sciences and healthtech, according to the report.

“Despite an overall lack of new fundraising and a liquidity market that did not shape up as hoped in 2025, deal activity has begun a phase of regrowth, with deal count estimates showing increases at each stage, and deal value, though concentrated in a small number of deals, falling just [8 percent] short of the 2021 figure,” the report reads.

Sandbox VR brings new gaming center to Houston's tech-savvy population

Get In The Game

Sandbox VR, a futuristic, full-body virtual reality gaming experience, has announced it will enter the Houston market this month, opening its first local gaming center on January 23.

"Houston's reputation as a hub for innovation and technology makes it a perfect fit for Sandbox VR," said Steve Zhao, CEO and founder of Sandbox VR, in a statement. "The city's diverse, tech-savvy population and strong entertainment culture create an ideal environment for our immersive VR experiences. LOL Entertainment continues to exceed our expectations as a partner, and we're excited to bring our cutting-edge virtual reality gaming to Texas's largest city."

The new gaming center opens Friday, January 23 at 797 Sorella Court in CityCentre.

One of the games that stands out is the Stranger Things: Catalyst game, based on the blockbuster Netflix television series. Groups of one to six players will be dropped into the sinister Hawkins Lab and the mysterious Upside Down to fight Demogorgons and other monsters. The game features Matthew Modine reprising his role as Dr. Martin "Papa" Brenner, who imbues players with psychic powers.

Other games include the supernatural pirate title The Curse of Davy Jones and other Netflix tie-ins based on Zack Snyder's Rebel Moon and Squid Game. Sandbox VR offers fully-immersive group play activities that range from combat to puzzle solving for a variety of age groups.

The opening of Sandbox VR is another part of the expansion of LOL Entertainment, who touts itself as one of the pre-eminent hosts of immersive and gaming experiences in the U.S. Sandbox VR will be their first entry into the Houston market, with another immersive group adventure game, Time Mission, set to open at the the Marq'E Entertainment District later this year.

“Bringing Sandbox VR to CityCentre Houston is a big milestone for LOL Entertainment, for Sandbox VR, and for this market,” said Rob Cooper, CEO of LOL Entertainment. “Houston is a fast-growing, experience-driven city, and we’re excited to give locals and visitors a truly immersive, social gaming destination that you can’t replicate anywhere.”

Presale tickets for the grand opening of Sandbox VR are available here. Standard pricing is $55-$65 per event, but Sandbox VR is running a special for 30 percent off with code OPEN30 for those who purchase before Thursday, January 22. Presale buyers are also entered into a drawing for free Sandbox VR for one year.

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This article originally appeared on CultureMap.com.

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