Key Takeaways:
- The rapid rise of artificial intelligence and autonomous vehicles drove business news in Central Texas in 2025.
- Firefly Aerospace made history as the first private company to successfully land on the moon.
- Data centers saw massive growth in construction in Central Texas, with the region leading the US in growth of colocation data centers.
- Samsung Electronics Co. got back on track with its semiconductor manufacturing complex in Taylor, Texas, after a $16.5 billion deal with Tesla.
- Waymo launched its driverless robotaxi service in Austin, traveling over 6.3 million miles in the city.
- Elon Musk returned his focus to his companies after a stint in the Trump administration, and Tesla shareholders approved a $1 trillion pay package for him.
Introduction to Central Texas’ Tech Scene
The year 2025 was a significant one for Central Texas, with technology being a major driver of business news in the region. From the rapid rise of artificial intelligence and autonomous vehicles to a first in commercial space exploration, the area saw numerous developments that made headlines. Artificial intelligence, in particular, completed its shift from novelty to widespread adoption, driving massive public and private investments in data centers and demand for electricity to run them. This, in turn, increased demand for advanced computer chips, such as those manufactured by Samsung Electronics Co., and played a significant role in Tesla Inc. CEO Elon Musk’s dreams of a world filled with autonomous vehicles.
Stargate and AI Investment
In January, the leaders of OpenAI, Austin-based Oracle Corp., and SoftBank joined President Donald Trump to announce the creation of a new company known as Stargate. The company aimed to build the physical and virtual infrastructure to power the next generation of advancements in AI, with operations already under construction in West Texas. The companies said they would eventually invest more than $500 billion in artificial intelligence infrastructure and data centers across the US. In September, they announced that operations were beginning at Stargate’s flagship AI operations in Abilene and announced five other sites, including one northeast of Austin in Milam County. OpenAI CEO Sam Altman emphasized the importance of building the necessary compute to power AI, stating that it is the key to ensuring everyone can benefit from AI and unlocking future breakthroughs.
Data Center Boom in Central Texas
Central Texas saw massive growth in the construction of data centers, with several power-hungry facilities being built or under construction around Austin and San Antonio. The region led the US in growth of colocation data centers over the past five years, according to real estate and investment management firm JLL. However, the growth has come with concerns about increased utility prices, water and energy demands, and power outage fears. Lawmakers enacted new rules for large-load users such as data centers to avoid overloading the statewide power grid. Tech companies have also been building and buying their own electricity and seeking bigger transmission lines to get it where it’s needed.
Samsung’s Revival in Taylor
Construction of Samsung Electronics Co.’s new semiconductor manufacturing complex in Taylor, which had been delayed due to declining demand and increasing competition, revved up with a $16.5 billion deal with Tesla to manufacture its next-generation AI chips. The plant’s first phase was originally expected to be operational by 2024 but was delayed amid reports suggesting construction was slowed due to lagging demand for Samsung microchips. The company has been losing ground in chip manufacturing, with its share of the global foundry market slipping to 7.7% in the first quarter from 8.1% in the previous three months. Now, Samsung says the plant may start up by late 2026 with completion expected in 2028.
Firefly’s Historic Moon Landing
Firefly Aerospace Inc. made history as the first private company to successfully land on the moon, announcing plans to begin selling shares publicly and soaring in its debut on the Nasdaq market. The aerospace and defense contractor drew international attention when its Blue Ghost lander gently touched down on the lunar surface in March and operated multiple experiments for two weeks. Firefly also announced plans to expand its headquarters in Cedar Park, where it operates its mission control and has a production facility. The company’s successful moon landing marked a significant milestone in commercial space exploration and paved the way for future missions.
Waymo’s Robotaxi Service
Waymo, the autonomous vehicle arm of Google parent Alphabet Inc., launched its driverless robotaxi service in Austin in March. Through the first nine months of the year, it traveled more than 6.3 million miles in Austin, operating about 100 vehicles across roughly 90 square miles. The company offers its local service in partnership with Uber and has been the clear leader in autonomous ride-hailing. However, Waymo drew scrutiny after Austin ISD said the company’s vehicles had illegally passed stopped school buses at least 20 times since August, prompting a voluntary software recall to address the problem.
Elon Musk’s Return to Focus
SpaceX and Tesla CEO Elon Musk left the Trump administration in late April after his leadership of the unpopular budget-cutting Department of Government Efficiency was blamed for declining sales of his company’s EVs. Major investors had voiced concerns as Musk’s focus shifted from business to far-right politics in the US and around the world. After profit at the Austin-based automaker plummeted 71% in the first quarter, Musk returned his focus to his companies, which include social media platform X and tunneling enterprise the Boring Co. Though he initially dismissed his government role as a reason for the big downturn at Tesla, he’s since acknowledged it led to protests and declining popularity both of his personal brand and Tesla’s.
Tesla’s Robotaxi Service and Musk’s Pay Package
Tesla launched its robotaxi service in Austin, but with safety monitors riding in the front passenger seat. The service was initially limited to a select group of users, many of whom were Tesla fans or influencers. Even with that friendly audience, the company quickly drew the attention of federal safety regulators after videos were posted to social media showing the vehicles driving erratically on Austin streets and breaking traffic laws. In a separate development, Tesla shareholders approved a $1 trillion pay package for Musk, giving him the possibility of becoming the world’s first trillionaire. The proposal passed with 75% support at the company’s annual shareholder meeting, almost certainly ensuring the tech titan’s future with the company, even as the Austin-based automaker ends an especially rocky year under his leadership.