Houston space co. secures $4.8B NASA contract to provide communications, navigation services

near space exploration

Per the contract, Intuitive Machines will provide near space communications and navigation services for NASA. Photo via NASA.gov

Houston-based space exploration, infrastructure, and services company Intuitive Machines has snagged a deal with NASA that could be worth more than $4 billion.

Under the contract, Intuitive Machines (Nasdaq: LUNR, LUNRW) will supply communication and navigation services for missions in the “near space” region, which extends from the earth’s surface to beyond the moon.

The five-year deal includes an option to add five years to the contract. In total, the contract could be worth $4.82 billion. The initial round of NASA funding runs from October 2024 through September 2029.

“This contract marks an inflection point in Intuitive Machines’ leadership in space communications and navigation,” Steve Altemus, CEO of Intuitive Machines, says in a news release.

Under the deal, the company will deploy lunar relay satellites and provide communication and navigation services that play a role in NASA’s Artemis campaign to establish a long-term presence on the moon.

A highlight of the contract is the debut of Intuitive Machines’ lunar satellite constellation, a service that the company “believes is a strategic element in its vision to commercialize lunar activities.” The constellation will deliver data and transmission services and enable autonomous operations.

Earlier this month, Intuitive Machines secured its fourth contract with NASA’s Commercial Lunar Payload Services, or CLPS, program. The $116.9 million agreement will task Intuitive Machines with delivering six science and technology payloads, which will include one European Space Agency-led drill suite to the Moon’s South Pole.

Additionally in August, Intuitive Machines signed a deal with Houston-based launch services company SEOPS to offer lunar rideshare services. Under the deal, Intuitive Machines will enable SEOPS to deliver customers' payloads to the surface of the moon, as well as to Lagrange points and geostationary transfer orbits.

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U.S. Congressman Jake Ellzey made the announcement in Dallas last week. Photo courtesy of Google

Google to invest $1B in data center tech, clean energy in Texas

coming in hot

Google is making a big investment in Texas to the tune of $1 billion.

According to a news release from the company, the tech giant will spend more than $1 billion to support its cloud and data center infrastructure and expand its commitment to clean energy.

The $1 billion will be spent on data center campuses in Midlothian and Red Oak to help meet growing demand for Google Cloud, AI innovations, and other digital products and services such as Search, Maps, and Workspace.

In addition to its data center investment, Google has also forged long-term power purchase agreements with Houston-based Engie, as well as Madrid-based entities Elawan, Grupo Cobra, and X-ELIO for solar energy based in Texas. Together, these new agreements are expected to provide 375 MW of carbon-free energy capacity, which will help support Google’s operations in Texas.

These agreements were facilitated through LEAP (LevelTen Energy’s Accelerated Process), which was co-developed by Google and LevelTen Energy to make sourcing and executing clean energy PPAs more efficient, and contributes to the company’s ambitious 2030 goal to run on 24/7 carbon-free energy on every grid where it operates.

The company has contracted with energy partners to bring more than 2,800 megawatts (MW) of new wind and solar projects to the state. Google’s CFE percentage in the ERCOT grid region, which powers its Texas data centers, nearly doubled from 41 percent in 2022 to 79 percent in 2023.

The initiatives were announced at a conference in Midlothian on August 15, attended by business leaders and politicians including U.S. Congressman Jake Ellzey, c, Ted Cruz, and Citi CIO Shadman Zafar.

The Dallas cloud region is part of Google Cloud's global network of 40 regions that delivers services to large enterprises, startups, and public sector organizations.

In a statement, Piazza said that "expanding our cloud and data center infrastructure in Midlothian and Red Oak reflects our confidence in the state's ability to lead in the digital economy."

Data centers are the engines behind the growing digital economy. Google has helped train more than 1 million residents in digital skills through partnerships with 590 local organizations, including public libraries, chambers of commerce, and community colleges.

In addition to its cloud region and Midlothian data center, Google has offices in Austin, Dallas, and Houston. The new Google’s total investment in Texas to more than $2.7 billion.

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This article originally ran on CultureMap.

Intuitive Machines has successfully launched its lunar lander, which, once it lands on the moon, would be the first commercial vehicle to do so. Photo via Intuitive Machines

Houston space tech co. makes history with lunar lander launch

one small step

Houston-based Intuitive Machines just made one giant leap for mankind.

On February 15, the space exploration, infrastructure, and services company successfully launched its IM-1 mission Nova-C class lunar lander on SpaceX’s Falcon 9 rocket. The launch followed a one-day delay.

The lunar touchdown of the Odysseus spacecraft is set for February 22, according to The Washington Post.

“If all goes well … it will become the first American spacecraft to gently set down on the moon’s surface since the Apollo 17 moon landing in 1972,” The New York Times notes.

It also would be the first commercial vehicle to land on the moon.

The IM-1 mission lander launched from NASA’s Kennedy Space Center in Florida at 12:05 a.m. CST. The lunar lander reached its orbit about 48 minutes later, and made its first communication with Intuitive Machines’ mission operations center in Houston at 12:59 a.m. CST.

The Intuitive Machines IM-1 mission is the company’s first attempted lunar landing as part of NASA’s Commercial Lunar Payload Services initiative, a key part of NASA’s Artemis moon exploration efforts. The science and technology payloads sent to the moon’s surface as part of the initiative are aimed at gearing up for human missions and a sustainable human presence on the moon’s surface.

NASA is the primary customer for this mission, paying Intuitive Machines $118 million to take its payloads to the moon’s surface, including a stereo camera to observe the plume of dust kicked up during landing and a radio receiver to measure the effects of charged particles on radio signals, according to The Times. Also aboard is cargo such as a camera built by students at Embry-Riddle Aeronautical University in Daytona Beach, Florida, and the Moon Phases project by American artist Jeff Koons.

“We are keenly aware of the immense challenges that lie ahead,” Steve Altemus, co-founder, president and CEO of Intuitive Machines, says in a news release. “However, it is precisely in facing these challenges head-on that we recognize the magnitude of the opportunity before us: to softly return the United States to the surface of the Moon for the first time in 52 years.”

The liftoff of the IM-1 mission was targeted for a multiday launch window that opened at 11:57 p.m. CST on February 13. Intuitive Machines and SpaceX had concluded pre-launch testing on February 12.

“I feel fairly confident that we’re going to be successful softly touching down on the moon,” Altemus told The New York Times. “We’ve done the tests. We tested and tested and tested. As much testing as we could do.”

Last year, Intuitive Machines went public through a SPAC (special purpose acquisition company) merger with Inflection Point Acquisition Corp. The Houston company’s stock trades on the NASDAQ stock market. Following the launch of the lunar lander, Intuitive Machines saw a spike in its stock price on February 15.

A Rice University study will consider how "design strategies aimed at improving civic engagement in stormwater infrastructure could help reduce catastrophic flooding." Photo courtesy of Kinder Institute

Rice University secures NSF support to look into Houston flooding

troubled waters

Houston will be the setting of a new three-year National Science Foundation-funded study that focuses on a phenomenon the city is quite familiar with: flooding.

Conducted by Rice University, the study will consider how "design strategies aimed at improving civic engagement in stormwater infrastructure could help reduce catastrophic flooding," according to a statement.

The team will begin its research in the Trinity/Houston Gardens neighborhood and will implement field research, participatory design work and hydrological impact analyses.

Rice professor of anthropology Dominic Boyer and Rice's Gus Sessions Wortham Professor of Architecture Albert Pope are co-principal investigators on the study. They'll be joined by Phil Bedient, director of the Severe Storm Prediction, Education and Evacuation from Disasters Center at Rice, and Jessica Eisma, a civil engineer at the University of Texas at Arlington.

According to Boyer, the study will bring tougher researchers from across disciplines as well as community members and even elementary-aged students.

"Our particular focus will be on green stormwater infrastructure—techniques like bioswale, green roofs and rain gardens—that are more affordable than conventional concrete infrastructure and ones where community members can be more directly involved in the design and implementation phases,” Boyer said. “We envision helping students and other community members design and complete projects like community rain gardens that offer a variety of beneficial amenities and can also mitigate flooding.”

Rice's Severe Storm Prediction, Education and Evacuation from Disasters Center, or SSPEED Center, is a leader in flood mitigation research and innovation.

In 2021, the center developed its FIRST radar-based flood assessment, mapping, and early-warning system based on more than 350 maps that simulate different combinations of rainfall over various areas of the watershed. The system was derived from the Rice/Texas Medical Center Flood Alert System (FAS), which Bedient created 20 years ago.

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This article originally ran on EnergyCapital.

Virgin Trains may be speeding into Texas. Photo courtesy of Virgin Trains

Transportation company steers talk of high-speed trains between Houston, Austin, and San Antonio

ALL ABOARD?

You've likely heard of the proposed high-speed "bullet" train that would connect Houston and Dallas, as well as the proposed transportation-in-a-tube concept that would link Houston, Austin, Dallas, San Antonio, and Laredo.

Now, another possible alternative to planes, Amtrak trains, and automobiles has chugged into the picture.

Virgin Trains USA, a transportation startup that plans to trade its shares on the Nasdaq stock exchange, is exploring two high-speed routes in Texas — one tying together Houston, Austin, and San Antonio, and the other between Houston and Dallas. All four of those cities are plagued by ever-increasing traffic tie-ups.

There's no word yet on when these routes might take shape. At this point, they're merely ideas, and ahead of the company going public, officials at Virgin Trains are staying mum.

In all, Virgin Trains has outlined seven potential routes in the U.S. beyond what it already has on the drawing board.

"Our goal is to build railroad systems in North America that connect major metropolitan areas with significant traffic and congestion," the company says in a filing with the U.S. Securities and Exchange Commission.

Virgin Trains aims to tie together heavily populated cities separated by 200- to 300-mile distances that are "too long to drive, too short to fly." It wants to run the trains along existing transportation corridors — rail, highway or a combination of the two — "to cost-effectively build our systems, as opposed to developing entirely new corridors at potentially significantly higher costs."

If the Virgin name sounds familiar, it should. British billionaire Sir Richard Branson's Virgin Group is a minority investor in Virgin Trains, which already operates a South Florida route between Miami and West Palm Beach. West Palm Beach-to-Orlando and Orlando-to-Tampa routes also are in the works in Florida, in addition to a Los Angeles-to-Las Vegas route. Virgin's other transportation investments include airlines and space travel.

Jim Mathews, president and CEO of the Rail Passengers Association, says he's on board with the Branson-backed Virgin Trains venture — not as an "anti-Amtrak" move but as an advancement in U.S. passenger rail travel.

"Speaking from the experience of someone who spent almost his entire career watching Sir Richard innovate, invest, and take risks, I firmly believe this could be a real shot in the arm for passenger rail in the United States," Mathews writes on the association's website. "Like all entrepreneurs, Sir Richard isn't afraid to fail, and he has made a few bad bets in the past. But he's also made some very good ones, and has transformed not just travel but philosophies wherever he has gone."

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This story originally ran on CultureMap.

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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.

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