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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.

"Private companies, like Phoenix, have been offering online degrees for a fee for years. And schools like M.I.T. and Stanford have been offering lectures for free online. Coursera is the next step: building an interactive platform that will allow the best schools in the world to not only offer a wide range of free course lectures online, but also a system of testing, grading, student-to-student help and awarding certificates of completion of a course for under $100. (Sounds like a good deal. Tuition at the real-life Stanford is over $40,000 a year.) Coursera is starting with 40 courses online - from computing to the humanities - offered by professors from Stanford, Princeton, Michigan and the University of Pennsylvania. "

"On Tuesday, Virginia is joining a group of 12 institutions that plan to open their courses to the world, free of charge, through an online platform created by the start-up company Coursera."

In what is shaping up as an academic Battle of the Titans - one that offers vast new learning opportunities for students around the world - Harvard University and the Massachusetts Institute of Technology on Wednesday announced a new nonprofit partnership, known as edX, to offer free online courses from both universities.