3 Houston-area companies appear on Fortune’s inaugural AI ranking

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Spring-based ExxonMobil ranks within the top 10 on the new Fortune AIQ 50 ranking. Photo via Getty Images.

Three companies based in the Houston area appear on Fortune’s inaugural list of the top adopters of AI among Fortune 500 companies.

The three companies are:

  • No. 7 energy company ExxonMobil, based in Spring
  • No. 19 tech company Hewlett Packard Enterprise, based in Spring
  • No. 47 energy company Chevron, based in Houston

All three companies have taken a big dive into the AI pool.

In 2024, ExxonMobil’s executive chairman and CEO, Darren Woods, explained that AI would play a key role in achieving a $15 billion reduction in operating costs by 2027.

“There is a concerted effort to make sure that we're really working hard to apply that new technology to the opportunity set within the company to drive effectiveness and efficiency,” Woods told Wall Street analysts.

Hewlett Packard Enterprise is also employing AI to decrease costs. In March, the company announced a restructuring plan — including the elimination of 3,000 jobs — aimed at cutting about $350 million in annual expenses. The restructuring is scheduled to wrap up by the end of October.

Hewlett Packard Enterprise’s Catalyst cost-cutting program includes a push to use AI across the company to improve efficiency, Marie Myers, the company’s executive vice president and chief financial officer, told Wall Street analysts in June.

“Our ambition is clear: A leaner, faster, and more competitive organization. Nothing is off limits. We are focused on rethinking the business — not just reducing our costs, but transforming the way we operate,” Myers said.

At Chevron, AI tools are being used to quickly analyze data and extract insights from it, according to tech news website VentureBeat. Also, Chevron employs advanced AI systems known as large language models (LLMs) to create engineering standards, specifications and safety alerts. AI is even being put to work in Chevron’s exploration initiatives.

Bill Braun, Chevron’s chief information officer, said at a VentureBeat-sponsored event in 2024 that AI-savvy data scientists, or “digital scholars,” are always embedded within workplace teams “to act as a catalyst for working differently.”

The Fortune AIQ 50 ranking is based on ServiceNow’s Enterprise AI Maturity Index, an annual measurement of how prepared organizations are to adopt and scale AI. To evaluate how Fortune 500 companies are rolling out AI and how much they value AI investments, Fortune teamed up with Enterprise Technology Research. The results went into computing an AIQ score for each company.

At the top of the ranking is Alphabet (owner of Google and YouTube), followed by Visa, JPMorgan Chase, Nvidia and Mastercard.

Aside from ExxonMobil, Hewlett Packard Enterprise, and Chevron, two other Texas companies made the list: Arlington-based homebuilder D.R. Horton (No. 29) and Austin-based software company Oracle (No. 37).

“The Fortune AIQ 50 demonstrates how companies across industry sectors are beginning to find real value from the deployment of AI technology,” Jeremy Kahn, Fortune’s AI editor, said in a news release. “Clearly, some sectors, such as tech and finance, are pulling ahead of others, but even in so-called 'old economy' industries like mining and transport, there are a few companies that are pulling away from their peers in the successful use of AI.”

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Cart.com, a Houston-founded unicorn ecommerce company, has closed its latest round of funding. Photo via cart.com

Houston-founded unicorn closes $240M round of funding led by Dallas firm

fresh funding

Cart.com, which moved its headquarters from Houston to Austin in December but still maintains a local presence, just landed $240 million in equity and debt funding.

Legacy Knight Capital Partners, the equity investment arm of the Legacy Knight Multifamily Office, led the equity round, with participation from Citi Ventures, Visa, and other Fortune 100 companies. J.P. Morgan and TriplePoint Capital provided the debt financing. Since being founded in 2020, Cart.com has secured $380 million in funding.

“What [CEO Omair Tariq] and the team at Cart.com have accomplished in the last 14 months is nothing short of remarkable. They have proven they have the ability to rapidly execute on their vision of building the first fully end-to-end e-commerce platform at massive scale,” David Sawyer, chief operating officer and managing partner of Legacy Knight, says in a news release.

Legacy Knight has offices in Houston and Dallas. On its website, Legacy Knight Capital Partners says it makes direct investments of $10 million to $50 million in growth-stage companies and real estate projects.

“With this new funding,” Tariq says, “we’re poised to continue our strategy of acquiring top providers from across the e-commerce value chain, while staying hyper-focused on meeting the evolving needs of the brands we serve.”

Cart.com recently acquired Dallas-based FB Flurry, a provider of technology for fulfillment and customer care, and SellerActive, a Tigard, Oregon-based provider of multichannel e-commerce software.

Omair Tariq, CEO of Cart.com Omair Tariq's Cart.com raised a big round last week. Photo via Cart.com

“The Cart.com team is building a platform that can help sellers of all sizes grow faster as the future of commerce becomes increasingly digital,” says Rubail Birwadker, senior vice president of global digital partnerships at Visa.

Cart.com supplies a variety of software and services for more than 2,000 online merchants.

Last year, the startup decided to relocate its headquarters to Austin, citing the city’s rise as an alternative to Silicon Valley and as “the country’s most exciting and fertile space for high-tech innovation.”

Furthermore, Cart.com said the relocation would help the startup by being in the same business ecosystem as Austin-based companies such as Whole Foods, YETI, Kendra Scott, Tito’s Handmade Vodka, Bumble, and Tecovas.

Cart.com’s move coincided with the startup being named Startup of the Year by Capital Factory, an Austin-based startup accelerator that has offices in Houston, Dallas, and San Antonio. Capital Factory is an investor in Cart.com.

Cart.com employs more than 850 people.

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MD Anderson makes AI partnership to advance precision oncology

AI Oncology

Few experts will disagree that data-driven medicine is one of the most certain ways forward for our health. However, actually adopting it comes at a steep curve. But what if using the technology were democratized?

This is the question that SOPHiA GENETICS has been seeking to answer since 2011 with its universal AI platform, SOPHiA DDM. The cloud-native system analyzes and interprets complex health care data across technologies and institutions, allowing hospitals and clinicians to gain clinically actionable insights faster and at scale.

The University of Texas MD Anderson Cancer Center has just announced its official collaboration with SOPHiA GENETICS to accelerate breakthroughs in precision oncology. Together, they are developing a novel sequencing oncology test, as well as creating several programs targeted at the research and development of additional technology.

That technology will allow the hospital to develop new ways to chart the growth and changes of tumors in real time, pick the best clinical trials and medications for patients and make genomic testing more reliable. Shashikant Kulkarni, deputy division head for Molecular Pathology, and Dr. J. Bryan, assistant professor, will lead the collaboration on MD Anderson’s end.

“Cancer research has evolved rapidly, and we have more health data available than ever before. Our collaboration with SOPHiA GENETICS reflects how our lab is evolving and integrating advanced analytics and AI to better interpret complex molecular information,” Dr. Donna Hansel, division head of Pathology and Laboratory Medicine at MD Anderson, said in a press release. “This collaboration will expand our ability to translate high-dimensional data into insights that can meaningfully advance research and precision oncology.”

SOPHiA GENETICS is based in Switzerland and France, and has its U.S. offices in Boston.

“This collaboration with MD Anderson amplifies our shared ambition to push the boundaries of what is possible in cancer research,” Dr. Philippe Menu, chief product officer and chief medical officer at SOPHiA GENETICS, added in the release. “With SOPHiA DDM as a unifying analytical layer, we are enabling new discoveries, accelerating breakthroughs in precision oncology and, most importantly, enabling patients around the globe to benefit from these innovations by bringing leading technologies to all geographies quickly and at scale.”

Houston company plans lunar mission to test clean energy resource

lunar power

Houston-based natural resource and lunar development company Black Moon Energy Corporation (BMEC) announced that it is planning a robotic mission to the surface of the moon within the next five years.

The company has engaged NASA’s Jet Propulsion Laboratory (JPL) and Caltech to carry out the mission’s robotic systems, scientific instrumentation, data acquisition and mission operations. Black Moon will lead mission management, resource-assessment strategy and large-scale operations planning.

The goal of the year-long expedition will be to gather data and perform operations to determine the feasibility of a lunar Helium-3 supply chain. Helium-3 is abundant on the surface of the moon, but extremely rare on Earth. BMEC believes it could be a solution to the world's accelerating energy challenges.

Helium-3 fusion releases 4 million times more energy than the combustion of fossil fuels and four times more energy than traditional nuclear fission in a “clean” manner with no primary radioactive products or environmental issues, according to BMEC. Additionally, the company estimates that there is enough lunar Helium-3 to power humanity for thousands of years.

"By combining Black Moon's expertise in resource development with JPL and Caltech's renowned scientific and engineering capabilities, we are building the knowledge base required to power a new era of clean, abundant, and affordable energy for the entire planet," David Warden, CEO of BMEC, said in a news release.

The company says that information gathered from the planned lunar mission will support potential applications in fusion power generation, national security systems, quantum computing, radiation detection, medical imaging and cryogenic technologies.

Black Moon Energy was founded in 2022 by David Warden, Leroy Chiao, Peter Jones and Dan Warden. Chiao served as a NASA astronaut for 15 years. The other founders have held positions at Rice University, Schlumberger, BP and other major energy space organizations.

Houston co. makes breakthrough in clean carbon fiber manufacturing

Future of Fiber

Houston-based Mars Materials has made a breakthrough in turning stored carbon dioxide into everyday products.

In partnership with the Textile Innovation Engine of North Carolina and North Carolina State University, Mars Materials turned its CO2-derived product into a high-quality raw material for producing carbon fiber, according to a news release. According to the company, the product works "exactly like" the traditional chemical used to create carbon fiber that is derived from oil and coal.

Testing showed the end product met the high standards required for high-performance carbon fiber. Carbon fiber finds its way into aircraft, missile components, drones, racecars, golf clubs, snowboards, bridges, X-ray equipment, prosthetics, wind turbine blades and more.

The successful test “keeps a promise we made to our investors and the industry,” Aaron Fitzgerald, co-founder and CEO of Mars Materials, said in the release. “We proved we can make carbon fiber from the air without losing any quality.”

“Just as we did with our water-soluble polymers, getting it right on the first try allows us to move faster,” Fitzgerald adds. “We can now focus on scaling up production to accelerate bringing manufacturing of this critical material back to the U.S.”

Mars Materials, founded in 2019, converts captured carbon into resources, such as carbon fiber and wastewater treatment chemicals. Investors include Untapped Capital, Prithvi Ventures, Climate Capital Collective, Overlap Holdings, BlackTech Capital, Jonathan Azoff, Nate Salpeter and Brian Andrés Helmick.

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

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