Houston sportstech startup shoots, scores in Pharrell Williams competition

on the rebound

GRIND won second place in Pharrell Williams' Black Ambition Prize. Photo via grindbasketball.com

Anyone who's witnessed even just a minute of basketball knows how important accuracy is in sinking shots on the court. One Houston startup has developed a device to help practice make perfect in a game.

GRIND’s portable basketball shooting machine, the first of its kind, was created by founder and CEO Thomas Fields, former basketball phenom at Houston’s Reagan High School (now Heights High School).

“I remember being on varsity as a freshman and shooting thousands of shots every day trying to be the best,” says Fields. “My school bought a shooting machine, but they never let me use it. It was a game-changing piece of equipment, and I didn’t even have access because the gyms were always closed or closing.

“And another major problem was getting your rebounds, so we set out to make a portable basketball rebounding machine, so you could take it anywhere like home, the park, or the gym. It was also important to make it affordable, too.”

The GRIND shooting machine is available online. Photo via grindbasketball.com

At just 110 pounds, the GRIND shooting machine is 54 percent lighter than other home shooting machines, has a 12-foot net, and needs just 90 seconds to set up or take down.

“Our portable shooting machine has been on the market for about three, four years now,” says Fields. “So now it's time to kind of accelerate the growth, and that’s pretty exciting. We really have our sights on NBA Africa for a partnership there. Another one is Adidas; we are collaborating with them right now and they're also one of the sponsors of Black Hat Mission. And hopefully, we would like to land some NBA guys to invest and really get behind our sportstech company, but also make a significant impact in the community by getting kids into tech through sports.”

To that end, GRIND recently won second place in a competition from Black Ambition, an organization founded by Pharrell Williams. With the tagline, “Uninterrupted ambition. Unmatched impact,” the Black Ambition Prize celebrates underrepresented founders globally.

“When I initially heard of Black Ambition, I just kind of heard that Pharrell had started a venture fund aimed at uplifting black and brown entrepreneurs,” says Fields. “And when I read more about it, I realized that their mission perfectly aligned with GRIND. Our goal is to try to get kids into tech and STEM, but use sports as the conduit and the bridge to get them there.

“We applied for the million-dollar cash prize for first place, but took second place, which is a $250,000 investment in the company. So now that Pharrell and Black Ambition are behind us, we are going out and raising some more capital to hit that hyper stage that we're going into. We are launching our software next year and our hardware has really been growing.”

Fields pitched GRIND on Shark Tank in May of 2021, where he was offered a joint deal for $250,000 for 25 percent of the company from both Mark Cuban and Barbara Corcoran. While Fields agreed on the show, the finalized terms of the deal were not disclosed.

- YouTubeThomas Fields is seeking $250000 for a 5% stake of GRIND. From Season 12 Episode 23 Watch Now: ...

As a startup, GRIND, a consumer brand developing the world’s first smart ecosystem of sports equipment products, represents the continued uptick with sportstech innovation in Houston.

“We want to revolutionize the world of sports equipment by leveraging cutting edge technology by developing sports equipment that can seamlessly connect to software, enhancing athletic performance, and pushing athletes to achieve their peak potential,” Fields says.

As GRIND continues to push forward and expand its footprint, it’s also looking to expand its customer base.

“I think the target users are middle school and high school athletes,” says Fields. “These are the kids that are striving to be great athletes and striving to get into college. We also have colleges that have our product, as well. But mostly, the customer is the parents of those athletes. That's really who we're trying to get excited.

“And then, of course, there are the coaches and trainers. They own gyms; they own organizations and need equipment for their schools and universities. That's another target customer of ours for sure.”

Ultimately, GRIND will continue to build on Fields’ initial inspiration to design products and technologies with the athletes — especially hoopers — in mind.

“Our goal in the next few years is to really amp up the scholarships that we facilitate to funnel kids into STEM tech careers and pathways,” says Fields. “GRIND Day, which is a proclamation the City of Houston gave us for August 12 each year, is a day where we bring sports, tech, and culture all under one umbrella. Kids see us using 3D printers and lasers to cut the products that we make in our warehouse, which is in an underserved community, which hopefully makes them think it’s cool and want to get into technology.”

Here's your latest roundup of innovation news you may have missed. Photo via Getty Images

3 Houston startups join accelerators, PE-backed biz names new execs, and more innovation news

short stories

It's been a busy month so far with plenty of Houston startup news, major ecosystem events, and more — and there might be some headlines you may have missed.

In this roundup of short stories within Houston startups and tech, three startups join three different accelerator programs, a Houston innovator publishes a book, and a PE-backed tech company makes changes to its C-suite.

Rivalry Tech snags spot in Comcast NBCUniversal SportsTech Accelerator

Rivalry Tech, the parent company for stadium mobile ordering platform sEATz, was selected for a prestigious program. Photo via rivalrytech.com

A Houston-based startup has been selected for the third cohort for the Comcast NBCUniversal SportsTech Accelerator. Rivalry Tech, a software company that provides mobile ordering technology platform sEATz to stadiums, is one of 10 startups in the program.

The new cohort was selected from over 920 applicants across 40 countries. The six-month program — expanded from its previous 12-week format — allows access to access to leaders and decision makers from across the partner consortium, including NBC Sports, Sky Sports, Comcast Spectacor, Golf, NASCAR, WWE, PGA TOUR, U.S. Ski & Snowboard, USA Swimming, and USA Cycling.

Since the first class in 2021, SportsTech startup alumni have participated in 90 pilots, partnerships, and commercial deals with consortium partners.

"Our alumni from the first two classes of the Comcast NBCUniversal SportsTech accelerator continue to display a prowess for delivering impactful technology while unlocking new revenue opportunities, and I look forward to seeing what powerful innovations and unique partnerships emerge from this year’s program,” says Jenna Kurath, vice president of Startup Partnerships and Head of Comcast NBCUniversal SportsTech, in a news release. "As we evaluated how to bring even more value to our startups and SportsTech partners, a clear need emerged - more time collaborating to tackle complex business challenges. The new six-month format creates additional space for focused testing and experimentation with a curriculum designed for business refinement while allowing the enterprise-ready startups we've selected to continue serving their existing customers.”

PE-backed HungerRush names new execs

HungerRush has a handful of new execs. Photo via Getty Images

Houston-based HungerRush, a cloud software provider for the restaurant industry, announced new leaders within its C-suite. The company, recently backed by New York City-based private equity firm Corsair Capital New York City-based private equity firm Corsair Capital, announced three new executives.

  • David Tabachnick has been named CFO. He joins the company from Acoustic where he most recently served as CAO. He brings more than 20 years’ experience to his new role as CFO, including extensive private equity experience through Vista Equity Partners.
  • Patrick Hughes joins as vice president of finance. He will focus on emphasizing longstanding partnerships, reporting, automation, and environment of controls and advise on growth paths for HungerRush. With more than 15 years’ experience in both accounting and FP&A, he excels in high growth environments focused on technology advancements.
  • Jim DaBroi has been appointed COO. He has more than 25 years of experience in developing and growing customer support operations for various SaaS and payments companies. In his role at HungerRush he will be focused on leading the deployment and installations of customer success and technical support efforts.
  • Ashishh Desai has been named vice president of independent operators sales following the company's acquisition of Menufy acquisition. He was previously a co-founder of Kansas City-based Menufy, an industry-leading online food ordering platform acquired in October 2021 and will continue to build and grow HungerRush’s I/O sector.

“We are excited to attract this caliber of world-class Fintech and PE-based talent with the addition of David and Patrick, who together will be key to our rapid growth strategy. In addition, the appointments of Jim and Ashishh bring deep experience in SaaS, payments and sales to our team that is unmatched," says HungerRush CEO Perry Turbes in a news release. "With our now robust leadership team, we will continue to accelerate our commitment to elevate the restaurant technology space and meet the evolving needs of our customers to help them achieve their own goals in the restaurant industry.”

Heroshe named to nonprofit accelerator's spring cohort

The Heroshe team will participate in a hybrid accelerator program. Photo via heroshe.com

A Houston-based tech startup called Heroshe has joined Virgina-based hybrid accelerator Lighthouse Labs for their spring 2023 cohort. Heroshe, according to its website, is a purpose-driven technology company solving the problem of access to global commerce for African businesses.

"We are on a mission to bridge the commerce gap, simplify imports and empower Africans to access global markets," reads the website.

Its eleventh year, Lighthouse Labs, a nonprofit organization, named eight companies to its Batch 14, which begins March 13 in Richmond, Virginia, and ends with Demo Day on May 23.

“This cohort’s companies offer bold solutions to address current-day problems in industries ranging from logistics to cybersecurity, health/wellness to retail, and real estate to software,” says Paul Nolde, managing executive director at Lighthouse Labs, in a news release. “This group of startups represents the best of innovation and entrepreneurship across the Commonwealth and beyond.”

Around 200 companies applied and were evaluated. Of the applications, 49 moved forward to the first round of reviews, and 17 participated in interviews. All companies will receive $20,000 in equity-free funding, participate in weekly educational programming, get mentorship from Lighthouse’s extensive mentor network, and connect directly with local partners and investors.

Houston innovator publishes first book

Kara Branch's book is available on Amazon. Image via Amazon

A Houston innovator — an award-winning one at that — has published a book Kara Branch is the CEO of Black Girls Do Engineer, an organization on a mission to inspire future women in science, technology, engineering, and mathematics.She released her first book, “What is S.T.E.M.?”

"Many are familiar with the acronym S.T.E.M. but don’t necessarily understand what the term means," reads the book's description. "This book will help you understand what is S.T.E.M. and introduce you to S.T.E.M. careers that falls under each letter."

IncentiFind finds spot in growth-focused program

IncentiFind was selected for a new program. Photo courtesy of IncentiFind

IncentiFind, a Houston-based startup that helps the real estate industry find grant opportunities, has joined Chicago-based Moderne Ventures' inaugural "Passport Class," which is a six-month program providing its participants education, exposure, insight, and relationships to drive customer growth.

"Unlike a traditional accelerator, Moderne Passport is a comprehensive industry immersion program that helps companies of all stages – seed through pre-IPO – hone their go-to-market strategies in the real estate sector, build relationships with industry leaders and execute pilot programs and customer relationships with some of the largest companies in the world," says Carolyn Kwon, Moderne Passport director, in a news release.

IncentiFind, founded by Natalie Goodman, is one of six companies selected for the first batch of startups. Moderne Ventures is a venture capital firm focused on the industries of real estate, finance, insurance, ESG, and home services.

"Moderne most often looks outside its industries to find technologies that can be applicable within them," says Constance Freedman, founder and managing partner at Moderne Ventures. "This latest Passport cohort was curated to include innovative solutions that are highly applicable to some of our industry's most pressing challenges. We look forward to helping these companies optimize their products and services and connect with partners in the Moderne Network who can benefit most from them."

Teamates, a new, Houston-based, multi-sport meetup app, connects like-minded sporty types who want to connect and run, hike, surf, or play golf, pickleball, and more. Photo courtesy of TeeMates

Smart new Houston-based app helps sporty locals connect and get their game on

play on

Active Houstonians who're looking to meet up with fellow locals and get their sports on now have a new app for that.

Teamates, a new, Houston-based, multi-sport meetup app, connects like-minded sporty types who want to connect and run, hike, surf, or play golf, pickleball, and more. Users can download the app on Apple IOS or Google Play.

Specifically, users follow their favorite sports, while the app then filters meetups and social feed for those sports. Users can join in, favorite friends, post meetups with photos, group message, request to join meetups, and post and share on the feed and stories.

Seriously competitive users can soon earn rewards and get on the leaderboard to win biweekly sports prizes. Friends can award others "Mate Medals" for being top-rated buddies and true MVPs.

Founder Lydia Davies created Teamates after launching TeeMates Golf last year. Her inspiration came out of necessity: Davis simply wanted to help her “golf-addicted husband” who travels frequently and was constantly playing rounds alone.

“I have noticed more and more over the years that it is hard for adults to find friends, especially to find friends to play sports with,” said Davies in a press release. “Why not get active and use it as an icebreaker? Let us come out of the last few years healthier and happier by linking together to get outside and get active. Teamates makes it so easy to join a meetup with just one click.”

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This article originally ran on CultureMap.

This Houston startup has fresh funding to build out its data intelligence platform. Photo via aim7.com

Houston sportstech platform raises $1.3M seed round

fresh funding

How many times have you forced yourself to do an arduous workout when you just weren’t feeling it? Despite what some trainers will tell you, you probably didn’t feel any better after. Sports scientist Dr. Erik Korem could have told you that, but more importantly, so could his creation, AIM7.

Marketed as “the fastest, easiest way to change your habits and improve your health,” Korem just raised a $1.3 million seed round that will bring his ambitious app to consumers in its beta form early next month.

The data intelligence platform would know that on a day that you’re stressed, that Peloton tabata ride might not be in your best interest. How? “The data from your Apple Watch or your Fitbit is just data. ‘I walked 7000 steps or I slept 8 hours,’” explains Korem. “We are the recommendation engine that makes this usable for you.”

When using AIM7, there’s no sticking to a set schedule of workouts. With both short term and long term goals in mind, the technology tells you what your body needs when you need it. On a day that your health tracking device notes that you haven’t slept well and your body is stressed, Korem says, the run you had planned may be replaced by a more realistic 20 minutes of yoga.

Korem’s team member, Dr. Chris Morris coined the term “fluid periodization” and has published academic work on the concept.

“Just because you have something written on paper doesn’t mean that your body is going to adapt to that stress,” says Korem. In the sports world, that means tailoring workouts to the immediate situation — and reaping improvements in performance.

Korem should know. He’s been using this concept for years as a High Performance director for both college and professional football teams, a trainer for gold medal Olympians and even working with the United States Department of Defense. In 2016, then-GM of the Houston Texans, Rick Smith, hired Korem to work his magic on his team as one of pro football’s first directors of sports science. His time with the Texans ended in 2018, but it provided him with a key investor—Smith himself.

The $1.3 million, which Korem says AIM7 will use to hire more engineers to add to his team, owes much to his success at last month’s Houston-based Dress Up Buttercup pitch contest, Build Up Buttercup. Hosted by local fashion blogger and influencer Dede Raad and her husband, Ted, the contest gave Korem a forum to share his story.

“I didn’t quite understand the scope of it,” he admits. “I didn’t realize it was going to be this full ‘Shark Tank’ thing, but I prepared and memorized my pitch. It’s just game time, right?”

Other investors include John Jarrett of Academy Sports and Outdoors, former Cleveland Browns coach Freddie Kitchens, and Jamaican track-and-field Olympian Veronica Campbell Brown, whom Korem has trained for years.

Currently, AIM7 boasts a remote team of five full-time employees as well as many more part-time helpers. As the brand, which Korem started in 2020, takes off, Korem says, “My dream is to build a standalone health and wellness tech company in Houston… I want to set up something really special in Houston.”

Erik Korem founded AIM7, which just closed $1.3 million in seed funding. Photo via aim7.com

Houston-based AiKYNETIX is equipping runners with high-tech tracking tools. Image courtesy of AiKYNETIX

Houston sports tech startup is enhancing performance metrics for runners and athletes

sweat tech

With the Houston Marathon only five months away, a new application using human motion insights could help a runner refine their form to reach peak performance – all from the convenience of their smart phone.

While traditional treadmills are limited in training feedback and wearables are not designed to track elevation, Houston-based AiKYNETIX uses real-time technology to provide a new option for runners on treadmills.

“Runners spend a lot of time, energy and money to run better,” says Denis Akhiyarov, CEO and co-founder. “In my personal life with training for nine marathons, I’ve seen limitations with wearables, they don’t actually track running form while running. Overall, our technology tracks not only your basic parameters but it can also analyze the human running form while in motion.”

AiKYNETIX, which was founded in January 2021, is positioned to replace power meters and can make a treadmill smarter. It has ability to plug into interactive video platforms for sports and serves as a much cheaper and more widely available analysis tool outside of motion capture labs, he says.

“Motion analysis is becoming important in sports,” says Akhiyarov, a data scientist who previously worked as a developer in machine learning. “We want to make this expensive fitness technology available for everyone.”

The current target market for the technology is tech-savvy triathletes, however, there are wider applications for the technology including for coaches to get real-time performance metrics. Also, there are medical applications such as for rehabilitation and injury prevention.

“One of the discoveries for us is seeing differences between runners using different shoes,” says cofounder and Rice University MBA Anton Galvas. “It’s very interesting to see how much energy you preserve depending on what kind of shoe you wear.”

The team’s primary market for sale is the IOS app store but they plan to expand to fitness platforms for integration and have seen interest from treadmill companies for potential partnerships.

There are other current competitor solutions that require special hardware and wearables but set up can be cumbersome and if performed in a running lab, it can be very costly for the user. The AiKYNETIX platform is a downloadable app that has a $10 monthly subscription and can be set up with only a tripod.

Within six months of launching, the technology was being tested in a professional lab to track 360 different running conditions. AiKINETIX is a finalist of CodeLaunch accelerator and has moved into phase 1 with America’s Seed Fund powered by the National Science Foundation.

AiKYNETIX has experts and consultants with experience at NASA, Major League Baseball, and European Soccer League.

The AiKYNETIX team is raising seed funding to help to accelerate the development of the app to go to a wider market. The team will also host a showcase of the technology at the grand opening of the fitness center at The Ion this month.

The Cannon's new sportstech hub is just one step in putting a national spotlight on Houston as a city for vibrant sports innovation. Graphic courtesy of The Cannon

Newly opened hub to put Houston on the map for sports innovation

sportstech

Silicon Valley emerged as a consumer tech capital, and Atlanta has carved out a niche for fintech — but as sports innovation continues to be driven by startups and new technology, where should the innovators set up shop?

"There isn't really a sports tech town, and we felt there's an opportunity to stick a stake in the ground and claim Houston as the sports tech capital of the world," says Lawson Gow, founder of The Cannon.

The Cannon in collaboration with Braun Enterprises and Gow Media opened Houston's first dedicated space to sports innovation. (Gow Media is the parent company of InnovationMap.) The new two-story space includes 23 offices and a 1,500-square-foot open space in 53 West, a Galleria-area office building recently renovated by Braun. The hub is adjacent to Gow Media's office alongside Gow Broadcasting LLC and the SportsMap Radio Network, which includes local sports station ESPN 97.5 as well as national syndicated content.

The idea for a sports-focused tech hub has been on the minds of The Cannon team since the early days of The Cannon, where sportstech activity started occurring naturally.

"The sportstech startup scene in Houston caught us by surprise at the very early stages of the Cannon," Gow tells InnovationMap. "We were created to transform Houston's innovation community and part of that was thinking about what things we could win at. Sportstech, for a lot of reasons, seemed really logical to us."

The Cannon's new space is in 53 West, a Galleria-area office building recently renovated by Braun Enterprises. Graphic courtesy of The Cannon

Over the years, The Cannon has grown its network of sportstech startups and developed its programming within the industry. Now, these efforts have a home in The Cannon Uptown - Sports + Media.

"Houston has never been able to attract tech entrepreneurs for any reason, and sports tech can be that reason," Gow says. "Having a sports innovation hub in Houston is only one of a dozen grand initiatives that needs to happen."

Some of those other initiatives include growing sports tech density, introducing new sports-focused accelerators, more events, funding — including venture capital and angel investment — and interest from professional teams.

Another recent sportstech opportunity that's come about in Houston is the SportsMap Tech Acquisition Corp. (NASDAQ: SMAPU) going public as a blank-check company last month at $115 million. The SPAC is run by David Gow, Lawson Gow's father and CEO of Gow Media, and plans to find a sports tech business to acquire, specifically in one of four categories within the industry: fan engagement, health and wellness, esports, or fantasy/gambling.

"With the IPO complete, we now begin the search for a company to acquire in the sports tech industry, which we define as the realm where technology is transforming sports," says David Gow. "We have not been able to talk with target companies yet, but have been doing our homework to develop a list. We also plan to tap into the extensive relationships of our board."

The company is backed by an all-star team making up the board, including Oliver Luck, Reid Ryan, David Graf, and Steve Webster.

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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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