Coursera backs co-founder Andrew Ngs new AI education firm with $100 million investment
* Coursera took a third stake in the new company
* LearnVector expects to launch its first lessons early next year
* Coursera says it will partner with LearnVector to sell and develop courses together
SAN FRANCISCO, July 28 (Reuters) – Andrew Ng, co-founder of online learning platform Coursera, announced on Tuesday a new AI initiative focused on teaching white-collar workers new skills to stay relevant as AI reshapes the professional working world. Startup LearnVector is backed by a $100 million investment from Coursera. Ng said he founded LearnVector because he thinks the widespread belief that AI will replace workers is misguided and that as AI automates more tasks, white-collar workers will need to learn new skills that make them important. The conventional wisdom “is that AI will replace humans, and I believe the opposite,” Ng said in an interview. “AI will be the biggest force in accelerating human development if we get this right, and I think…rather than creating a job apocalypse, AI will make people much more productive and create new demand for skills.” Ng, a computer scientist who is general partner of the AI Fund and an Amazon.com executive, said he is hiring engineers for his new company. Coursera is LearnVector’s lead investor, and Ng declined to identify other potential investors or LearnVector’s total funding needs. He is expected to attend Coursera’s second-quarter earnings call on Wednesday to discuss financing. Launched in 2012, Coursera offers courses and certificate programs created by universities and companies on topics such as project management, cyber security and financial markets. In the interview, Ng said LearnVector is still working on course offerings, pricing, and user interface. But using AI core models from various third parties, the company plans to offer its first courses early next year. Coursera’s investment provides one-third of LearnVector, representing a value of approximately $300 million for the company. While that figure is relatively small compared to multibillion-dollar Silicon Valley deals, Coursera is betting on about 13% of its $790 million in cash available at the end of March. LearnVector will use artificial intelligence to develop personalized courses for white-collar workers that can track progress and reach further levels over time as students become more proficient, Ng said. He hopes to sell courses to corporations, governments and higher education.
Coursera said in a statement reviewed by Reuters that it would partner with LearnVector to sell and develop its courses together. Companies like Amazon, Meta, and Block, known for its Square payment service, have attributed recent massive layoffs in part to AI-driven efficiencies; however, some studies have suggested other reasons, such as a weakening economy. “There will be a need for people to change their skill mix, as AI automates a subset of the job and still leaves people with a lot of work to do,” said Ng, who serves as the new company’s CEO.
“I love learning. It’s one of the most fun things I enjoy spending my time with, and I want to bring that to everyone.” (Reporting by Greg Bensinger; Editing by Cynthia Osterman)
