This Month's Latest Tech News in McAllen, TX - Wednesday April 30th 2025 Edition

McAllen is experiencing a pivotal tech moment as Texas rides an unprecedented AI investment wave into 2025, marked by a record $2.9 billion in state startup funding for the first quarter alone.

Key players like Saronic and NinjaOne - both Austin-based tech innovators - led massive funding rounds, bolstering Texas's profile as a national tech hub and signaling new opportunities across fields from robotics to cybersecurity.

Check out the Texas startup funding surge. This momentum reflects broader workforce shifts, with tech-related jobs in demand and employers rapidly adopting recruitment automation and hybrid workplace models to lure skilled professionals.

Learn more about workforce trends. In tandem, AI startups - across the U.S. - continue to draw billion-dollar rounds, with applications spanning healthcare, legal tech, and core AI infrastructure, setting the stage for a dynamic tech labor market that McAllen's talent pool is well-positioned to enter.

Explore AI startup funding highlights.

The upcoming MXLAN International Economic Summit, set for May 9 at the McAllen Convention Center, will bring together business leaders, educators, and policymakers to spotlight the economic potential of artificial intelligence (AI) in the Rio Grande Valley.

Hosted by the McAllen Economic Development Corporation in collaboration with the McAllen Chamber and City of McAllen, the event features a packed agenda of keynote presentations and panels tackling the transformation of core sectors like manufacturing, supply chains, and workforce development through AI adoption.

• Main focus: The summit emphasizes the economic potential of AI for the Rio Grande Valley, highlighting transformative changes across multiple industries.
• Speaker insights: Attendees will hear from leaders such as Texas Workforce Commission's Commissioner Bryan Daniel and learn about approaches to upskilling the workforce for future demands.
• Special keynote: Creative technologist Jesús Cochegrús will inspire the Valley to embrace digital evolution and prepare for ongoing change.
• Entrepreneurial opportunity: For entrepreneurs and tech professionals, MXLAN is a prime networking event to discover how emerging technologies can fuel local and cross-border growth.
• Event collaboration: The event is coordinated by names like Michael Davis from the McAllen Economic Development Corporation, Susan Miller from the McAllen Chamber, and Lisa Perez representing the City of McAllen.

More details and the full schedule are available in coverage from the Rio Grande Guardian, Texas Border Business, and the McAllen Economic Development Corporation.

Texas has rapidly expanded its AI-powered surveillance infrastructure through Operation Lone Star, raising pressing questions about the balance between public safety and civil liberties in the state.

The Department of Public Safety now deploys advanced technologies - including facial recognition from Clearview AI, cell phone location tracking through platforms like Tangles, and automated license plate readers from companies like Flock Safety - to monitor the border and beyond, supported by billions of dollars in state funding.

Civil liberties groups and some lawmakers are expressing growing concern about the scope of these tools, highlighting risks of warrantless surveillance and the potential erosion of Fourth Amendment protections, especially as legislative oversight struggles to keep pace with technological capabilities.

While some regulatory measures, such as House Bill 149 and Senate Bill 1964, have been introduced to improve transparency and safeguard privacy, critics argue these laws fall short, often lacking public disclosure requirements and meaningful enforcement.

As Texas continues to invest heavily in AI analytics and surveillance - spending over $20 million on social media monitoring tools alone - the debate intensifies over the state's movement toward a surveillance society and the long-term consequences for residents' privacy rights.

To understand more about the evolution and implications of Texas' AI surveillance arsenal, explore investigations from the Texas Standard, a comprehensive breakdown by Biometric Update, and a deeper look at contractor involvement and oversight issues with The Texas Observer.

Nvidia's recent commitment to build two massive AI supercomputer manufacturing plants in Texas marks a pivotal shift in both the company's operations and the broader U.S. technology landscape.

Partnering with Foxconn in Houston and Wistron in Dallas, Nvidia aims to begin mass production of American-made AI supercomputers within the next 12 to 15 months, leveraging over one million square feet of manufacturing space and drawing on the latest in robotics and digital twin technologies to optimize efficiency.

This $500 billion domestic investment not only comes amid evolving U.S. trade policies and global supply chain uncertainties, but is also projected to create hundreds of thousands of jobs and drive long-term economic growth - further reinforcing Texas as a national tech hub.

• Nvidia's expansion into Texas demonstrates its commitment to growing domestic AI manufacturing capabilities.
• Foxconn and Wistron partnership will streamline the production process by leveraging their combined expertise and resources.
• Advanced technologies like robotics and digital twins are being incorporated to ensure efficient operations and innovation.
• Economic impact includes the creation of hundreds of thousands of jobs and sustained long-term growth for the Texas tech sector.
• Resilience and security are improved by producing key AI infrastructure components from within the U.S., reducing reliance on foreign supply chains.

"This move is notable not just for its scale; for the first time, the engines of the world's AI infrastructure will be domestically produced, helping to meet soaring AI demand, underpin a new generation of hyper-efficient 'AI factories,' and strengthen supply chain resilience amid rising geopolitical tensions."

Location	Partner	Main Focus
Houston, TX	Foxconn	Manufacturing, Robotics
Dallas, TX	Wistron	Production Scaling, Digital Twin

Read more on Nvidia's Texas expansion in the official announcement, Governor Abbott's statement on the investment, and this in-depth CNBC analysis of the project's nationwide implications.

The University of Texas Rio Grande Valley (UTRGV) is making headlines after being awarded a $2.8 million National Science Foundation ExpandAI grant, positioning the university as a regional leader in artificial intelligence (AI) research and education.

In partnership with Georgia Tech's AI Institute for Advances in Optimization, UTRGV's ARISE initiative will introduce specialized AI courses, bolster its doctoral program in computer science, and expand hands-on training for students and junior faculty while focusing on developing autonomous robotics and AI-powered infrastructure monitoring systems.

The project combines newly acquired supercomputing resources with collaborative research - such as drone-based inspections for highways and railways - to move from reactive to predictive infrastructure maintenance, directly addressing safety, economic efficiency, and workforce development in the Rio Grande Valley.

As a Hispanic-Serving Institution, UTRGV's equity-focused approach aims to build a diverse STEM pipeline and provide its students with cutting-edge research opportunities and mentorship from leading AI experts, establishing a model for minority-serving institutions nationwide.

• AI Research Leadership: UTRGV is establishing itself as a regional AI leader thanks to a new NSF ExpandAI grant.
• Collaborative Initiatives: The ARISE initiative introduces specialized courses and supports advanced research through partnerships.
• Supercomputing Resources: The university's new supercomputing power accelerates hands-on research and advanced AI projects.
• STEM Diversity Pipeline: As a Hispanic-Serving Institution, UTRGV seeks to broaden STEM access for underrepresented communities.
• Student Opportunities: Enhanced research, training, and mentorship open doors for local students and junior faculty.

Resource	Description	Read More
Official Announcement	Details on the NSF ExpandAI grant and partnership goals	Learn More
The Monitor Coverage	Highlights increased opportunities for students and faculty	Read Article
Program Overview	Explores research focus and workforce development impacts	See Details

"UTRGV's ARISE initiative is setting a standard for minority-serving institutions nationwide," said Karen Gonzalez, a senior project coordinator.

On April 23, the Texas House overwhelmingly passed House Bill 149, the Texas Responsible Artificial Intelligence Governance Act, signaling the state's commitment to AI transparency and oversight while seeking to balance innovation with consumer trust.

Slated to take effect January 1, 2026, HB 149 imposes new requirements on businesses operating in Texas, mandating clear disclosures when websites or services use AI, prohibiting the creation of deceptive deep fake content, and setting strict limits on the use of biometric identifiers without explicit consent.

The legislation also establishes a state Artificial Intelligence Council to oversee ethical AI deployment, enforce rules around discrimination and privacy, and shepherd a regulatory sandbox for testing emerging technologies - moves designed to offer both regulatory certainty for industry and stronger protections for residents.

• AI transparency is a central theme, as businesses must disclose when their websites or services use AI (AI transparency and oversight requirements).
• Consumer protections are emphasized through prohibitions on deceptive deep fakes and the use of biometric data without explicit consent (new biometric and consumer protections).
• Oversight and ethics will be enhanced by the creation of a state Artificial Intelligence Council to enforce regulations and establish a regulatory sandbox (legislative status and details).

While backers like Sarah White argue that the bill will position Texas as a national leader in responsible AI adoption, critics like John Garcia warn that the compliance costs and expansion of state oversight could chill innovation or disadvantage local startups.

As the bill now heads to the Senate for further debate, its comprehensive approach to AI regulation - touching everything from healthcare disclosures to biometric data and free speech rights - could become a model or a cautionary tale for other states navigating the fast-changing AI landscape.

This April, leaders and experts from across the Rio Grande Valley gathered in McAllen and Brownsville for a series of forums dedicated to charting the region's digital future through AI-driven “smart city” innovation.

At the flagship event - “Smart Cities, Smarter Economy: The Future of Automation in the Rio Grande Valley” - South Texas College's Dr. Lyudmyla Dickinson proposed the creation of a regional council to coordinate AI data management and the construction of local data centers, highlighting the need for cities to work together as automation shapes new economic opportunities.

• Regional Council Formation: Dr. Lyudmyla Dickinson emphasized the importance of coordinating AI data and constructing local data centers for city collaboration.
• Economic Opportunities: Jim Darling and other advocates discussed efficiency improvements and potential growth for sales tax revenue.
• Cooperation Emphasized: With active participation from business leaders like Susan Brown, academics, and local officials, the forums stressed the necessity for joint planning among Valley cities.

“The Valley's ability to thrive in an AI-powered era will hinge on cooperation and deliberate planning across city lines.” - Patricia Moore, local official

Initiative	Key Stakeholder	Main Benefit
AI Data Management Council	Dr. Lyudmyla Dickinson	Coordinated data strategy
Smart City Automation	William Jones	Improved public services

For further details about the forum's proposals and discussions, see the coverage of the regional AI council proposal, learn more about upcoming AI forums in the Valley, or hear insights directly from local panelists in this exclusive interview on the future of automation.

Nvidia is facing a projected $5.5 billion loss as new U.S. export controls tighten restrictions on shipments of its advanced H20 AI chips to China, signaling escalating trade tensions with major global ramifications.

The controls, part of an effort to safeguard American technology from potential use in Chinese supercomputing, triggered immediate market reactions - Nvidia's shares tumbled nearly 6%, with similar impacts across other tech companies, as the company must now obtain indefinite export licenses for key products.

In response, Nvidia is accelerating domestic production, committing over one million square feet of manufacturing space in Arizona and Texas and planning to invest up to $500 billion in U.S.-based AI infrastructure within the next four years.

This shift not only aims to bolster supply chain resilience amid potential Chinese retaliatory tariffs but also marks a significant reorientation of advanced semiconductors manufacturing back to American soil.

For more on the financial and market impacts, see the Associated Press report on Nvidia's export control cost.

Details on the company's domestic expansion efforts are available in TechCrunch's coverage, Nvidia says it plans to manufacture some AI chips in the US.

For analysis on how these export controls may affect the broader AI chip market and Nvidia's continuing market dominance, read TechTarget's assessment of AI chip tariffs.

South Texas College (STC) faculty are stepping up as leaders in the integration of artificial intelligence (AI) for community development and inclusion, demonstrating how educational innovation can benefit both campus life and the broader Rio Grande Valley.

Professor Sarah Lee, an assistant professor of economics at STC, has methodically infused AI tools in her classes over the past decade, using them to spark creativity and build skills relevant to today's workforce STC Professor Using AI to Strengthen Community.

Lee and fellow STC AI experts recently played a prominent role in the “Smart Cities, Smarter Economy: Future of Automation for the RGV Forum,” sharing how generative AI is reshaping job tasks, supporting efficiency, and narrowing the digital divide in McAllen Future of Automation Forum.

These efforts were recognized at the event hosted at STC's Pecan Campus, where President Daniel Lopez highlighted the college's commitment to empowering local communities through technology and preparing students for the region's evolving economic landscape President Solis Closing Remarks at AI Forum.

This leadership from STC affirms McAllen's position as a hub of inclusive, future-focused tech education in South Texas.

McAllen is making significant headway in advanced robotics thanks to UTRGV's MARS Lab, which is pioneering applications in AI-driven autonomous inspection and infrastructure monitoring.

Globally, new AI-powered drone systems are slashing traditional inspection times - for example, a recent deployment in Japan cut underground tunnel survey durations from two hours to just 17 minutes, dramatically improving safety and efficiency with AI-driven drone inspection.

These breakthroughs echo broad trends across multiple sectors, with AI and drone technologies collectively making infrastructure inspections safer, more accurate, and far less labor-intensive by enabling high-level autonomy and real-time data analysis.

As regulatory approvals expand, drones are moving from pilot projects into mainstream civil engineering, aviation, and energy fields, showing time savings of up to 90% compared to manual assessments and reducing costs and risks for cities and operators alike.

UTRGV's MARS Lab, leveraging these global advancements, is positioning McAllen at the forefront of AI robotics, helping the region build smarter, more resilient infrastructure for the future.

GrubMarket's recent acquisition of Delta Fresh Produce marks a major infusion of technology and scale into McAllen's food logistics sector. Delta Fresh, with an 80,000-square-foot facility in McAllen and a legacy spanning nearly a century, is renowned for distributing Mexican-grown produce to top retailers and national restaurant chains like Walmart, Kroger, and Chipotle.

The deal brings Delta Fresh's extensive farming and supply chain network under GrubMarket's tech-driven umbrella, unlocking advanced tools such as an AI-powered supply chain suite, logistics automation, and digital payment solutions.

CEO Matthew Lee emphasized that the integration will enhance national year-round distribution and make food supply more efficient and reliable, while Delta Fresh leadership will remain to ensure continuity and leverage new technological strengths.

This partnership is poised to elevate McAllen's role as a regional logistics hub, ushering in smarter inventory management, supply chain transparency, and opportunities for streamlined operations.

For more on this transformative acquisition, check out Progressive Grocer's coverage of GrubMarket's deal, insights on planned technology integration from FreshPlaza, and GrubMarket's own announcement outlining future plans and local impact.

This month's developments underscore McAllen's rapid emergence as a regional tech center, with major milestones driving sustained momentum. Zoho Corporation's acquisition and redevelopment of the historic Echo Hotel in Edinburg marks a significant investment, promising both local job creation and a new hub for digital innovation in the Rio Grande Valley.

For more on this, see Major Tech Investment to Transform Historic Echo Hotel Property in Edinburg.

• Major Investment: The acquisition and redevelopment of the Echo Hotel by Zoho Corporation signals a significant boost to local tech infrastructure and jobs.
• AI Summit: The upcoming MXLAN International Economic Summit will convene leaders to shape the region's AI and tech growth; learn about summit details.
• Data Ownership: Local leaders advocate for community data control to ensure long-term self-reliance and economic empowerment, as opposed to ceding control to outside investors. Read more on why data ownership matters.
• Workforce & Collaboration: Increased tech investment and a growing talent pipeline highlight that strategic collaboration and local stewardship are essential for lasting prosperity.

Key Initiative	Impact	Lead Contact
Echo Hotel Redevelopment	Job Creation & Innovation Hub	Elizabeth Davis
MXLAN Economic Summit	Regional AI & Tech Strategy	Mary Smith
Community Data Ownership	Digital Empowerment	Joseph Smith

McAllen is demonstrating that strategic collaboration and local stewardship are key to turning AI opportunity into lasting regional prosperity.