Amazon gets FAA approval allowing it to expand drone deliveries piloted outside of Houston

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An FAA spokesperson said the approval applies to College Station, Texas, where the company launched drone deliveries in late 2022. Photo courtesy of Amazon

Federal regulators have given Amazon key permission that will allow it to expand its drone delivery program, the company announced Thursday.

In a blog post published on its website, Seattle-based Amazon said that the Federal Aviation Administration has given its Prime Air delivery service the OK to operate drones “beyond visual line of sight,” removing a barrier that has prevented its drones from traveling longer distances.

With the approval, Amazon pilots can now operate drones remotely without seeing it with their own eyes. An FAA spokesperson said the approval applies to College Station, Texas, where the company launched drone deliveries in late 2022.

Amazon said its planning to immediately scale its operations in that city in an effort to reach customers in more densely populated areas. It says the approval from regulators also "lays the foundation” to scale its operations to more locations around the country.

Businesses have wanted simpler rules that could open neighborhood skies to new commercial applications of drones, but privacy advocates and some airplane and balloon pilots remain wary.

Amazon, which has sought this permission for years, said it received approval from regulators after developing a strategy that ensures its drones could detect and avoid obstacles in the air.

Furthermore, the company said it submitted other engineering information to the FAA and conducted flight demonstrations in front of federal inspectors. Those demonstrations were also done “in the presence of real planes, helicopters, and a hot air balloon to demonstrate how the drone safely navigated away from each of them,” Amazon said.

The FAA’s approval marks a key step for the company, which has had ambitions to deliver online orders through drones for more than a decade. During a TV interview in 2013, Amazon founder Jeff Bezos said drones would be flying to customer’s homes within five years. However, the company’s progress was delayed amid regulatory setbacks.

Last month, Amazon said it would close a drone delivery site in Lockeford, California - one of only two in the nation - and open another one later this year in Tolleson, Arizona, a city located west of Phoenix.

By the end of the decade, the company has a goal of delivering 500 million packages by drone every year.

Get those Fire Sticks, cables, and more even faster now. Photo courtesy of Amazon

Amazon delivers upgrade to Houston shoppers

it's 'zon

Whether it's for fear of shopping in public or just plain convenience, using Amazon Prime just makes life easier. Now, Houstonians can enjoy even speedier service, thanks to a Jeff Bezos rocket-sized boost.

Amazon has announced that Prime members in Houston can now enjoy even faster same-day delivery. Specifically, some 3 million items originally tagged as "Today by" or "Overnight" can now be ordered for delivery throughout the day, according to a press release. Items are guaranteed to reach doorsteps in five hours.

That means locals can get those Fire TV Sticks (for streaming and chilling), charging cables, batteries, face wash, sunscreen, toothpaste, paper towels, and coffee capsules without leaving the house.

The global juggernaut is able to execute orders by storing need-it-today and popular items in brand new facilities even closer to customers. These first-of-their-kind buildings serve as mini-fulfillment centers optimized for faster click-to-delivery speeds. Houston's newest site, which launched in July, is located at 10611 Red Bluff Rd. in Pasadena.

Houston is one of six cities getting the Prime treatment, a press release notes.

Prime members can also place an order by midnight for overnight delivery by selecting "Overnight by 8 am" to have orders delivered by the next morning. The service is free to Prime members on qualifying orders over $35.

While deliveries are meant to arrive in five hours, the fastest same-day delivery thus was made in an impressive 22 minutes in Dallas. Residents here can only hope that Houston beats Big D's record.

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This article originally ran on CultureMap.

Local kids can pursue STEM and space dreams thanks to the generous gift. Photo courtesy of Space Center Houston

Jeff Bezos' foundation gifts Space Center Houston with $1 million grant

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Billionaires such as Richard Branson and Jeff Bezos may be blasting off into the beyond, but for now, space travel is still primarily relegated to the expert astronauts who train here in Houston.

Now, a new $1 million grant to our beloved hub of all things cosmic may just inspire local kids to rocket towards a career in space exploration or STEM careers. Space Center Houston has just received the generous, two-comma grant from Blue Origin, Bezos' company.

Blue Origin auctioned off seats on first crew New Shepard suborbital flight, which yielded an impressive $28 million. Bezos, his brother Mark, and Wally Funk, one of the Mercury 13 women will join the auction winner on the upcoming trip.

With the $28 million proceeds, Blue Origin then awarded $1 million to 19 organizations (each) through its foundation, Club for the Future.

"This donation is enabling Club for the Future to rapidly expand its reach by partnering with 19 organizations to develop and inspire the next generation of space professionals," said Bob Smith, Blue Origin CEO, in a statement. "Our generation will build the road to space and these efforts will ensure the next generation is ready to go even further."

The $1 million Space Center Houston received will go towards the center's Title 1 school field trip program, enabling students with access to the center's extensive space artifact collection, per a press release. Space Center Houston's Girls STEM Pathway initiative, which promotes learning experiences for girls in STEM careers, will also receive funds. The comprehensive, six-phase initiative includes an introductory elementary school experience, a middle school project-based STEM experience, a summer bridge program with mentoring support, and a program for high school girls to engage in scientific research, the center notes.

"Blue Origin's grant will further enable Space Center Houston to provide immersive science learning experiences for underserved Houston area youth," said the center's president and CEO, William T. Harris, in a release. "We are very thankful to Blue Origin for helping us inspire and prepare students for future STEM careers. With Blue Origin's support, we can empower students with hands-on STEM learning opportunities through the wonders of space exploration."

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This article originally ran on CultureMap.

Mackenzie Scott has gifted tens of millions to Houston-area organizations and institutions, and her latest gift is to Prairie View A&M University. Photo courtesy of Prairie View A&M

Philanthropist gifts historic $50 million to Houston-area university

major gift

Historically Black universities have traditionally been overshadowed and underfunded compared to their non-Black collegiate counterparts. But now, a major public figure's game-changing gift has helped level the playing field for a beloved Houston-area school.

Noted author and philanthropist MacKenzie Scott (many know her as the former wife of Amazon CEO and billionaire Jeff Bezos) has donated a massive $50 million to Prairie View A&M University, the institution announced on December 15. The gift is the largest one-time endowment in the school's 144-year history.

Under terms of the donation, the funds can be used at the discretion of the president to support the needs of the university, per a press release. Administrators have chosen to designate $10 million of the total to create the Panther Success Grant Program, an effort to assist juniors and seniors with unpaid balances created by the financial challenges posed by COVID, the school announced.

"This is a historic gift for Prairie View, coming at a time when the university had already decided and begun to invest heavily in key areas to strengthen its academic programs and improve student success," said Ruth J. Simmons, president of Prairie View, in a statement. "The timing of this gift could therefore not be better."

Simmons adds in a statement that she had been in contact with Scott "about a matter not involving Prairie View," and thus was "stunned and, for a time speechless" when Scott's assistant phoned and revealed the donation.

Another whopping gift from Scott includes $18 million to the Greater Houston YMCA.

In a post on Medium, Scott notes that she and her advisers have disbursed over $4 billion in gifts to 384 organizations across all 50 states, Puerto Rico, and Washington D.C. over the last four months. This is in effort to "accelerate my 2020 giving through immediate support to people suffering the economic effects of the crisis," Scott writes.

Scott's generosity includes myriad Texas organizations and groups, including:

  • Easterseals of Greater Houston
  • Easterseals Rehabilitation Center, San Antonio
  • East Texas Food Bank
  • El Pasoans Fighting Hunger
  • Feeding the Gulf Coast
  • South Texas Food Bank
  • Southeast Texas Food Bank
  • Goodwill Houston
  • Goodwill Industries of Dallas
  • Goodwill Industries of East Texas
  • Goodwill Industries of Fort Worth
  • Goodwill Industries of San Antonio
  • Heart of Texas Goodwill Industries
  • Meals on Wheels Central Texas
  • Meals on Wheels Montgomery County
  • Meals on Wheels North Central Texas
  • Texas A&M International University
  • United Way of El Paso County
  • United Way of San Antonio and Bexar County
  • YMCA of Greater Houston
  • YMCA of Metropolitan Dallas
  • YWCA El Paso del Norte Region
  • YWCA Greater Austin
  • YWCA of Lubbock
  • YWCA San Antonio
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This article originally ran on CultureMap.

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Houston VC funding surged in 2024, fueled by major Q4 activity

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The venture capital haul for Houston-area startups jumped 23 percent from 2023 to 2024, according to the latest PitchBook-NVCA Venture Monitor.

The fundraising total for startups in the region climbed from $1.49 billion in 2023 to $1.83 billion in 2024, PitchBook-NVCA Venture Monitor data shows.

Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.

Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.

Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”

PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.

“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.

Houston space company lands latest NASA deal to advance lunar logistics

To The Moon

Houston-based space exploration, infrastructure, and services company Intuitive Machines has secured about $2.5 million from NASA to study challenges related to carrying cargo on the company’s lunar lander and hauling cargo on the moon. The lander will be used for NASA’s Artemis missions to the moon and eventually to Mars.

“Intuitive Machines has been methodically working on executing lunar delivery, data transmission, and infrastructure service missions, making us uniquely positioned to provide strategies and concepts that may shape lunar logistics and mobility solutions for the Artemis generation,” Intuitive Machines CEO Steve Altemus says in a news release.

“We look forward to bringing our proven expertise together to deliver innovative solutions that establish capabilities on the [moon] and place deeper exploration within reach.”

Intuitive Machines will soon launch its lunar lander on a SpaceX Falcon 9 rocket to deliver NASA technology and science projects, along with commercial payloads, to the moon’s Mons Mouton plateau. Lift-off will happen at NASA’s Kennedy Space Center in Florida within a launch window that starts in late February. It’ll be the lander’s second trip to the moon.

In September, Intuitive Machines landed a deal with NASA that could be worth more than $4.8 billion.

Under the contract, Intuitive Machines 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. The initial round of NASA funding runs through September 2029.

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