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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.

"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."