How Austin, Texas became the world's tech boomtown

Austin is weird. And that’s a compliment! The city is known for world-class blues and country musicians, world-class museums, beautiful outdoor spaces, and BBQ. But in the last few years, it’s grown its reputation as a top U.S. tech hub, and a destination for startups looking to scale quickly.  

The city was recently ranked number one for STEM professionals, ahead of Boston and Seattle, thanks to a high share of STEM employment, over 11.5% of all jobs, and explosive job growth.

Despite headlines suggesting a slowdown, Austin’s long-term momentum is unmistakable. Between 2018 and 2023, Big Tech jobs surged 44%, and VC investment reached a record $3.4 billion across 86 deals in the first quarter of 2025. 

Climate tech. Austin’s newest frontier

To the east in Houston, Texas established its reputation as the oil capital of the world. But in Austin, the Lone Star State is expanding its energy dominance into green technology and climate solutions. 

As of 2025, there are over 1,400 companies creating more than 28,000 job openings in the climate tech sector.

Base Camp, an energy company developing residential battery storage systems to enhance grid reliability, just raised a $200 million Series B. The company plans to establish a battery manufacturing facility in Texas and expand their energy services regionally and nationally. 

enSights is using AI to optimize performance and operations of solar assets, boosting clean energy efficiency. It raised a $10 million Series A earlier this year. 

Exowatt just raised a $70 million Series A, bringing their total funding to over $90 million. The company is creating renewable energy solutions for data centres and other AI infrastructure. 

Smart manufacturing is taking over Austin 

Austin universities’ supply of engineers and AI talent, combined with its reputation as a logistics hub make it an ideal location to innovate in manufacturing. 

Phoenix Semiconductor just raised a $5 million seed round, with the goal of reviving legacy chips that are no longer in production but remain critical for industries like defense, automotive, manufacturing, oil & gas, and medical sectors. 

Apptronik is building AI-powered humanoid robots tailored for use in manufacturing and supply chain operations, including warehouses and factories. The startup closed a $350 million Series A in February, with backing from Alphabet and others. 

Silicon Labs, a semiconductor firm headquartered in Austin that develops microcontrollers, wireless SoCs, and modules, raised $23 million from the Texas Semiconductor Innovation Fund earlier this year. Now, the company is building an $80 million R&D facility in the city. 

Autonomous systems move from labs to Austin streets

Austin is getting a front-row seat in autonomous vehicle trials and other autonomous robots. Many manufacturers have already built facilities in the city. Tesla’s Gigafactory is employing 22,000 people. REE Automotive is building EV platforms for various vehicle types. And Volcon is building off-road electric vehicles.  All of that investment has laid the groundwork for the next generation of autonomous systems startups. 

Avride, which operates both robotaxis and sidewalk delivery robots conducts their road testing in Austin. The company has already partnered with UberEats for food deliveries, and has struck a robotaxi partnership with Hyundai. 

River is a Swiss robotics firm partnering with Veho to pilot wheel-legged delivery robots in Austin capable of navigating stairs, uneven terrain, and porches. They plan to scale to a fleet of 100 as the system learns from real-world data. 

Contoro Inc. has developed an autonomous robotic system designed for unloading trailers and containers using AI-driven robotic arms. The company raised $13.5 million in March after winning the SXSW Pitch Award. 

Big companies are relocating to Austin

There is now a flurry of companies moving to Austin to take advantage of the state’s tech talent, graduating from top universities like UT Austin and Texas State University. The state also offers no income tax and no corporate income tax. It’s no wonder large corporations are starting to call Austin home. 

T1 Energy, a leading solar module manufacturer, relocated its headquarters to Austin in early 2025, and also acquired a 5-gigawatt facility in the state.  

Realtor.com moved its headquarters from Santa Clara, California to Austin in February, saying that the move coincides with a boom in the Texas real estate market. According to the company, six of the top ten most popular ZIP codes in the U.S. are now in Texas.

Financial services firm PEAK6 Investments made the move to Austin earlier this year as they sought a more dynamic business environment and access to skilled workers. 

For startups tackling climate challenges, smart manufacturing, and autonomous vehicles, Austin is pulling away from its competition by creating a business environment where founders and CEOs can start businesses and scale quickly. 

Are you an Austin tech startup looking to tell your story? Contact Mind Meld PR today.