Houston’s Position in the AI Cluster Race
December 12, 2025
Ross DeVol
Chairman Emeritus and Distinguished Fellow
Houston stands at a pivotal moment in the national race to build competitive AI clusters. While a handful of metros have surged ahead by leveraging specialized talent and concentrated investment dollars, Houston brings something fundamentally different—a broad portfolio of globally consequential industries where AI can create disproportionate economic impact. Energy, health care, aerospace and logistics are not just regional strengths; they are AI-intensive sectors that will shape the next era of competitiveness.
Houston’s comparative advantage as an AI hub resides in its strong industry clusters where AI is already reshaping productivity, operations and competitiveness. Organizations such as Chevron, Exxon, Texas Medical Center (TMC), NASA Johnson Space Center, and Port Houston are at the forefront in applying AI to their operations. At the same time, world-class research is performed at the Baylor College of Medicine, Rice University (Digital Health Institute-DHI), the University of Houston Human-Centered AI Institute (HCAII) and UTHealth Houston, creating a strong talent pipeline to drive regional innovation.
The Greater Houston Partnership is additionally seizing the moment, championing a regional strategy that positions AI as both a growth engine and an economic imperative. When combined with innovation acceleration assets such as the Ion District and the TMC Innovation Factory, combined with local venture capital targeting AI startups, Houston has the ingredients to become a top-tier global AI ecosystem. Softeq—a software company focused on AI, machine learning and the internet of things—is a key player in the embedded AI space and has established its own venture fund aimed at early-stage startups in the region.
While Houston remains nationally competitive, it is fifth behind other heartland metros based upon key metrics including AI talent, innovation and adoption.[i] However, strategic investments and cross-sector collaboration can position Houston as top-tier global AI ecosystem member.
Talent
To understand Houston’s trajectory, it is important to begin with its talent base. The latest Census Bureau data shows that 36% of adults 25 or older in Houston hold a bachelor’s degree, matching the national average, but the composition of those degrees offers a strategic advantage. A significant share of those degrees are in science, technology, engineering and mathematics (STEM) fields, likely driven in part by Houston’s outsized employment opportunities in architecture, engineering, scientific consulting and other fields, representing more than double that of the rate of the rest of the U.S., while the corresponding share in management, scientific and technical consulting services being 40% greater. For example, Audubon, a leader in engineering services, opened the Audubon Technology Center in Houston in May 2025, continuing to underscore the strength of Houston’s scientific and technical community.[ii]
Houston has 491,000 graduates in computer science, engineering and mathematics (CSEM), just 147,000 fewer than heartland leader, Chicago. Moreover, Houston has 2,100 enrolled in PhD or post-doctorates in STEM programs in the area overall and 4,400 workers whose online profiles list AI skills.
Training pathways are also expanding quickly to meet the new AI demand. University of Houston’s (UH) Department of Computer Science offers a number of BS, MS and PhD degrees with concentration in AI including human-computer interaction, visual computing and applications in data sciences. Students can participate in AI-focused research in labs in machine learning, computational biomedicine and other areas. UH’s Cullen College of Engineering offers a graduate certificate in AI and data science and is available to students enrolled in MS or PhD programs. Cullen has an MS in Engineering Data Science and AI with a strong core curriculum offering many AI electives. The College of Business offers an undergraduate AI certification in business through a collaboration with the HCAII. HCAII provides short courses and open-enrollment workshops in industry focused areas such as “AI in Energy.”[iii] UH also works to incorporate private sector partnerships with companies like Intel to support a range of AI upskilling, non-degree certifications in executive AI training and entrepreneurship.
Comparatively, Rice University launched a dedicated BS in Artificial Intelligence degree pathway in Fall 2025. The new major is based within the Department of Computer Science at the George R. Brown School of Engineering & Computing. The curriculum is touted as being built around a cohesive, custom AI curriculum rather than a bundle of electives and emphasizes interdisciplinary foundations, alongside technical AI courses.[iv] A fifth year master’s in computer science option is available for undergraduates who complete the AI major, as well.
UTHealth Houston, through its McWilliams School of Biomedical Informatics, offers graduate certifications in AI. Houston Community College has an associate degree in AI in partnership with Microsoft, Amazon Web Services, and Intel. Lone Star College provides AI and machine learning courses.
Taken together, these assets position Houston as one of the most diverse and industry-aligned AI talent markets in the heartland.
Innovation
Houston’s innovation ecosystem reflects the intersection of deep scientific capability and industry-driven research needs. NASA’s Johnson Space Center (JCS) plays an important role in the AI ecosystem in Houston, as JCS researchers partner with Rice University’s Space Institute to hold events bringing together industry leaders, government agencies and academics to explore cutting edge applications of AI in autonomous systems, robotics and mission optimization.[v] This consortium, including the Institute for Physical Artificial Intelligence at Purdue University, is at the forefront of harnessing AI’s potential to advance scientific discovery and space technology.
At UTHealth Houston’s AI Hub, researchers and faculty are actively developing and applying cutting-edge AI tools to solve practical healthcare challenges.[vi] AI is deployed to enhance patient care, advance disease prevention and drive biomedical innovation. Rice University and Houston Methodist partnered to create DHI–a joint institute to develop AI-enabled clinical and operational solutions across health systems. Energy companies conduct AI research and deploy it for predictive maintenance, production optimization and emissions tracking.
In recent years, AI research initiatives in Houston have increased dramatically. 36 AI research papers from Houston have been published to date at top AI conferences. However, Houston’s strength in industry applications in AI can be seen in the 763 AI-related patents that have been granted to date, just slightly below patents in Dallas, Austin and Chicago. Federal R&D contract awards for spending on AI tied Houston with Dallas—ranked fifth nationally.
Adoption
While many industries across Houston are rapidly deploying AI, the city’s health care vertical is at the forefront of this expansion. Houston Methodist Hospital has multiple AI deployment programs based upon the depth of its use cases, using AI to identify at-risk patients based upon predictive models in clinical workflow and subsequently personalize treatments. Additionally, Houston Methodist is an innovator in deploying generative AI for post-discharge monitoring to limit patient readmissions and improve follow-up communications.
Outside the applications of AI in health care, Kodiak Robotics, an autonomous trucking company, has been testing its unified virtual driver on highways, surface streets and off-road terrain. Its multi-sensor architecture adapts across platforms and improves continuously through real-world and simulated learning. They are preparing a driverless truck route between Houston and Dallas.[vii] The Port of Houston is among the leaders in its industry in utilizing AI in logistics planning and scheduling optimization. In the private sector, Foxconn and Nvidia are exploring the deployment of humanoid robots at a new Foxconn factory in Houston that will produce Nvidia AI servers. This would be the first time robots assemble a Nvidia AI server.[viii] Within the energy industry, GlobaLogix is integrating AI into anomaly detection and remote oilfield monitoring. Ambyint specializes in AI in artificial lift and operations in the energy sectors.
Taken together, these industry-level deployments have helped catalyze a fast-growing ecosystem of AI companies, investors and integrator across the region. As of March 2025, the number of job postings requiring AI skills in Houston was 11,400, nearly matching Austin, but roughly half of Dallas and Chicago. Houston performs best in percentage of firms with files in digital format at 32% relative to the four heartland leaders and ties Chicago at 34% on the share of jobs in a metro exposed to generative AI.
Softeq, for example, is one of Houston’s most successful AI firms with itegrated software and hardware capabilities and after starting in Houston, the firm now has over 500 employees worldwide. The region is home to other emerging players, including Persona AI, which is an early-stage firm developing humanoid robotics and AI -powered robotics for manufacturing.
A robust AI consulting, severices and systems-integration sector—featuring firms such as BlueLabel, Dualboot and Qubika—helps translate AI into enterprise adoption. On the investment side, firms like Mercury Fund, a key VC firm in Houston which recently led a round for Collide, a generative platform for energy, and Chevron Technology Ventures, which backs early-stage AI firms with applications in energy and industrial automation space, are fueling commercialization. Modi Ventures and the Texas HALO are active in the AI-seed investing area. All told, there are 210 startups creating AI-driven products and 113 VC deals in the Houston metro area. These are noteworthy levels, but fall behind those in Chicago, Austin, and Dallas.
[i] Muro, M., and Methkupally, S. (2025). Mapping the AI Economy: Which Regions are Ready for the Next Technological Leap? Brookings Metro. https://www.brookings.edu/articles/mapping-the-ai-economy-which-regions-are-ready-for-the-next-technology-leap/
[iii] https://www.bauer.uh.edu/ai/research/
[vii] https://www.axios.com/local/houston/2024/01/23/driverless-trucks-test-kodiak-robots