Houston space tech startup raises $350M series C, clinches unicorn status

$1B club

Axiom Space CEO Michael Suffredini (right) has announced the company's series C round with support from Aljazira Capital, led by CEO Naif AlMesned. Photo courtesy of Axiom Space

Houston has another unicorn — a company valued at $1 billion or more — thanks to a recent round of funding.

Axiom Space released the news this week that it's closed its series C round of funding to the tune of $350 million. While the company didn't release its valuation, it confirmed to Bloomberg that it's over the $1 billion threshold. Axiom reports that, according to available data, it's now raised the second-most funding of any private space company in 2023 behind SpaceX.

Saudi Arabia-based Aljazira Capital and South Korea-based Boryung Co. led the round. To date, Axiom has raised over $505 million with $2.2 billion in customer contracts, according to the company.

“We are honored to team with investors like Aljazira Capital, Boryung and others, who are committed to realizing the Axiom Space vision,” Axiom Space CEO and president Michael Suffredini says in a news release. “Together, we are working to serve innovators in medicine, materials science, and on-orbit infrastructure who represent billions of dollars in demand over the coming decade.

"We are building on the legacy of the International Space Station, leveraging the pillars that were constructed in low-Earth orbit more than two decades ago, to now support a burgeoning global space economy,” he continues.

Axiom, founded in 2016 by Suffredini and Executive Chairman Kam Ghaffarian, is working on the first commercial space station that will replace the International Space Station when NASA retires it in 2031. The first module is expected to launch to the ISS by 2026.

Boryung, which has reportedly invested in Axiom prior to this round, is a firm focused on health care investments. Chairman of the firm, Jay Kim, says Boryung is making investments in technology that supports human space missions and building a space health care system.

“We recognize the depth of human spaceflight knowledge and the level of space station construction and management experience at Axiom Space, as well as the sophistication of the company’s sales and business strategy,” Kim says in the release. “We have a shared vision and ethos and are excited to build opportunity together.”

Naif AlMesned, CEO and managing director of Aljazira Capital, says his investment in Axiom is in accordance with Saudi Vision 2030, a government program launched in 2016 by the Kingdom of Saudi Arabia to increase economic, cultural, and social diversification for the sovereign state.

“We believe in the importance of innovation in various sectors and across various markets," AlMesned says in the release. "In line with the Saudi Vision 2030’s transformative approach, we acknowledge the need for technology toward the advancement of human life. To that end, we are excited to support Axiom Space along its journey of building for beyond.”

In addition to its work on Axiom Station, the company is working on other contracts with NASA, including constructing a new age spacesuit, a long-term NASA contract that's reported to be $1.26 billion. Axiom has also collaborated with NASA on two private astronaut missions — with two more planned for 2024.

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UH receives $2.6M gift to support opioid addiction research and treatment

drug research

The estate of Dr. William A. Gibson has granted the University of Houston a $2.6 million gift to support and expand its opioid addiction research, including the development of a fentanyl vaccine that could block the drug's ability to enter the brain.

The gift builds upon a previous donation from the Gibson estate that honored the scientist’s late son Michael, who died from drug addiction in 2019. The original donation established the Michael C. Gibson Addiction Research Program in UH's department of psychology. The latest donation will establish the Michael Conner Gibson Endowed Professorship in Psychology and the Michael Conner Gibson Research Endowment in the College of Liberal Arts and Social Sciences.

“This incredibly generous gift will accelerate UH’s addiction research program and advance new approaches to treatment,” Daniel O’Connor, dean of the College of Liberal Arts and Social Sciences, said in a news release.

The Michael C. Gibson Addiction Research Program is led by UH professor of psychology Therese Kosten and Colin Haile, a founding member of the UH Drug Discovery Institute. Currently, the program produces high-profile drug research, including the fentanyl vaccine.

According to UH, the vaccine can eliminate the drug’s “high” and could have major implications for the nation’s opioid epidemic, as research reveals Opioid Use Disorder (OUD) is treatable.

The endowed professorship is combined with a one-to-one match from the Aspire Fund Challenge, a $50 million grant program established in 2019 by an anonymous donor. UH says the program has helped the university increase its number of endowed chairs and professorships, including this new position in the department of psychology.

“Our future discoveries will forever honor the memory of Michael Conner Gibson and the Gibson family,” O’Connor added in the release. “And I expect that the work supported by these endowments will eventually save many thousands of lives.”

CenterPoint and partners launch AI initiative to stabilize the power grid

AI infrastructure

Houston-based utility company CenterPoint Energy is one of the founding partners of a new AI infrastructure initiative called Chain Reaction.

Software companies NVIDIA and Palantir have joined CenterPoint in forming Chain Reaction, which is aimed at speeding up AI buildouts for energy producers and distributors, data centers and infrastructure builders. Among the initiative’s goals are to stabilize and expand the power grid to meet growing demand from data centers, and to design and develop large data centers that can support AI activity.

“The energy infrastructure buildout is the industrial challenge of our generation,” Tristan Gruska, Palantir’s head of energy and infrastructure, says in a news release. “But the software that the sector relies on was not built for this moment. We have spent years quietly deploying systems that keep power plants running and grids reliable. Chain Reaction is the result of building from the ground up for the demands of AI.”

CenterPoint serves about 7 million customers in Texas, Indiana, Minnesota and Ohio. After Hurricane Beryl struck Houston in July 2024, CenterPoint committed to building a resilient power grid for the region and chose Palantir as its “software backbone.”

“Never before have technology and energy been so intertwined in determining the future course of American innovation, commercial growth, and economic security,” Jason Wells, chairman, president and CEO of CenterPoint, added in the release.

In November, the utility company got the go-ahead from the Public Utility Commission of Texas for a $2.9 billion upgrade of its Houston-area power grid. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

A month earlier, CenterPoint launched a $65 billion, 10-year capital improvement plan to support rising demand for power across all of its service territories.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Houston researchers develop material to boost AI speed and cut energy use

ai research

A team of researchers at the University of Houston has developed an innovative thin-film material that they believe will make AI devices faster and more energy efficient.

AI data centers consume massive amounts of electricity and use large cooling systems to operate, adding a strain on overall energy consumption.

“AI has made our energy needs explode,” Alamgir Karim, Dow Chair and Welch Foundation Professor at the William A. Brookshire Department of Chemical and Biomolecular Engineering at UH, explained in a news release. “Many AI data centers employ vast cooling systems that consume large amounts of electricity to keep the thousands of servers with integrated circuit chips running optimally at low temperatures to maintain high data processing speed, have shorter response time and extend chip lifetime.”

In a report recently published in ACS Nano, Karim and a team of researchers introduced a specialized two-dimensional thin film dielectric, or electric insulator. The film, which does not store electricity, could be used to replace traditional, heat-generating components in integrated circuit chips, which are essential hardware powering AI.

The thinner film material aims to reduce the significant energy cost and heat produced by the high-performance computing necessary for AI.

Karim and his former doctoral student, Maninderjeet Singh, used Nobel prize-winning organic framework materials to develop the film. Singh, now a postdoctoral researcher at Columbia University, developed the materials during his doctoral training at UH, along with Devin Shaffer, a UH professor of civil engineering, and doctoral student Erin Schroeder.

Their study shows that dielectrics with high permittivity (high-k) store more electrical energy and dissipate more energy as heat than those with low-k materials. Karim focused on low-k materials made from light elements, like carbon, that would allow chips to run cooler and faster.

The team then created new materials with carbon and other light elements, forming covalently bonded sheetlike films with highly porous crystalline structures using a process known as synthetic interfacial polymerization. Then they studied their electronic properties and applications in devices.

According to the report, the film was suitable for high-voltage, high-power devices while maintaining thermal stability at elevated operating temperatures.

“These next-generation materials are expected to boost the performance of AI and conventional electronics devices significantly,” Singh added in the release.

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