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"Princeton, Penn and Michigan will join Stanford University and the University of California at Berkeley as partners of Coursera, a company founded earlier this year by the Stanford engineering professors Daphne Koller and Andrew Ng. Using Coursera's platform, the universities will produce free, online versions of their courses that anyone can take."

Now, with $16 million in venture capital funding from Kleiner Perkins Caufield & Byers (KPCB) and New Enterprise Associates (NEA), the two professors officially launched Coursera, their new online education company that includes partnerships with Princeton University, Stanford University, the University of Michigan and the University of Pennsylvania to offer web-based classes on the Coursera platform for free. A total of 37 undergraduate and graduate-level courses across a broad range of disciplines will launch this spring.

"Having done this, I can't teach at Stanford again," he said at a digital conference in Germany in January. "I feel like there's a red pill and a blue pill, and you can take the blue pill and go back to your classroom and lecture your 20 students. But I've taken the red pill, and I've seen Wonderland."

In a few slides, he'd spelled out the nine essential components of a university education: admissions, lectures, peer interaction, professor interaction, problem-solving, assignments, exams, deadlines, and certification. While Thrun admired MIT's OpenCourseWare-the university's decade-old initiative to publish online all of its lectures, syllabi, and homework from 2,100 courses-he thought it relied too heavily on videos of actual classroom lectures. That was tapping just one-ninth of the equation, with a bit of course material thrown in as a bonus.