Andrew Ng launches LearnVector with $100 million to train workers as AI reshapes jobs

Coursera backs co-founder Andrew Ng's new AI education firm with $100 million investment

SAN FRANCISCO, July 28 (Reuters) - Andrew Ng, co-founder of online learning platform Coursera , on Tuesday announced a new artificial intelligence startup focused on teaching white-collar workers new skills to stay relevant as AI reshapes the world of professional work. The startup, LearnVector, is backed by a $100 million investment from Coursera. Ng said he founded LearnVector because he thinks the popular belief that artificial intelligence will replace workers is misguided and white-collar workers simply need to learn new skills that keep them essential as AI automates more tasks. Conventional wisdom holds "that AI will replace people, and I believe in the opposite," Ng said in an interview. "AI will be the greatest ⁠force in accelerating human development if we do it right, and rather than ... creating a job apocalypse, I think AI will make people a lot more productive and create fresh demand for skills." Ng, a computer scientist, general partner at AI Fund and an Amazon.com AMZN.O director, is hiring engineers for his new company, he said. Coursera is the lead investor in LearnVector, and Ng declined to identify other possible investors or LearnVector's total funding needs. He is expected to join Coursera's second-quarter earnings call on Wednesday to discuss the funding. Coursera, which launched in 2012, offers classes and certificate programs created by universities and companies in topics like project management, cybersecurity and financial markets. In the interview, Ng said LearnVector was still working out course offerings, pricing and user interface. But the company, which is using AI foundation models from ⁠a variety of third parties, expects to offer its first courses early next year. Coursera's investment gives it one-third of LearnVector, suggesting a value of about $300 million for the company. While that figure is relatively small compared with multi-billion-dollar Silicon Valley deals, Coursera is betting about 13% of its $790 million in cash available at the end of March. LearnVector will use AI to develop individualized courses for white-collar workers that can track progress and ⁠become more advanced over time as pupils grow more proficient, said Ng. He expects to sell courses to corporations, governments and higher education. Coursera, in a statement reviewed by Reuters, said it will partner with LearnVector to sell and develop their courses together. Companies like Amazon, Meta ⁠and Block, known for its Square payment service, have attributed large recent job cuts in part to AI-driven efficiencies, though some studies have suggested other causes, such as a weakening economy. "There will be a need for people to shift their skill mix ⁠as AI automates a subset of work, but still leaves plenty of work for people to do," said Ng, who serves as CEO of the new company. "I love learning. It's one of the most fun things I enjoy spending my time doing, and I want to bring that to everyone." Reporting by Greg Bensinger; Editing by Cynthia Osterman Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Disrupted Greg Bensinger Thomson Reuters Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world's largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.

Exclusive: Andrew Ng's new AI-powered ed tech startup gets $100 million

Why it matters: The investment is one of the largest public bets yet by an established education technology company on AI-native learning, and marks Andrew Ng's latest stab at redefining how people learn using technology. Driving the news: With the investment, Coursera will own roughly a third of LearnVector, and the two companies will explore commercial partnerships that combine LearnVector's AI technology with Coursera's content library and global distribution network. * LearnVector aims to build AI agents that function as personal tutors -- adapting to each learner and practicing with them until they demonstrate they've mastered a concept. * The first LearnVector products are targeted for early 2027. The big picture: Khan Academy and other ed tech companies have already spent years searching for ways to use AI to improve education, while the leading AI providers are pitching their chatbots as tools for both students and teachers. What they're saying: Coursera CEO Greg Hart told Axios the LearnVector's goal is to build an experience that is longer-lasting than prompting a chatbot to help students learn. * "If it's not tied to a much more holistic, pedagogically rigorous view of the skill that you are trying to develop, I think that's going to be a shorter, less fulfilling, and less engaging outcome," Hart said. Reality check: Students, teachers and parents are struggling to see how AI can enhance learning without supercharging cheating and atrophying students' brains. * Many AI policies in schools are half-baked or confusing. * Training on AI tools has also also not kept pace. Around eight out of ten K-12 teachers say they've received no formal guidance on applying AI tools their work, Axios reported earlier this year. Yes, but: LearnVector is focused on education for workers and other adults, not K-12 or university education. The intrigue: Ng is Coursera's co-founder and remains its chairman even as he works to build LearnVector.