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Edited by: Fern Sidman
A growing sense of dissatisfaction among America’s wealthiest has spurred a significant financial backing for the fledgling University of Austin (UATX), a Texas-based institution that has already raised around $200 million, despite boasting only 92 students. Notable billionaires, including trader Jeff Yass, real estate developer Harlan Crow, and investor Len Blavatnik, have aligned behind the university, eager to create a platform that diverges from what the progressive, far-left orthodoxy of elite colleges. According to a report in The Wall Street Journal, Yass alone contributed $35 million to the institution, an extraordinary sum for a school without the traditional alumni base to draw from. Yass co-founded Susquehanna International Group, which holds a significant stake in TikTok, and is a major donor to Republican candidates.
Crow, an early and influential supporter of UATX, echoes the sentiment of many donors who see the existing higher education system as increasingly dismissive of Western accomplishments and ideologies. In The Wall Street Journal report, Crow stated, “Much of higher ed today seems to want to reject Western accomplishments and the accomplishments of Western civilizations in their entirety.” He views the UATX as a place that will not only foster ideological diversity but also emphasize the value of Western intellectual traditions, something he feels is under attack at many prestigious universities.
No shock that Clarence Thomas’ sugar daddy Harlan Crow is a major donor to Bari Weiss’ “anti-woke” con UATX. https://t.co/WcX8NnL80o
— Roy Edroso (@edroso) October 13, 2024
Beyond financial contributions, Crow has been actively involved in supporting UATX’s growth. According to The Wall Street Journal, he and his wife, Kathy, have hosted multiple events at their home in Dallas, helping to introduce the university to potential donors and thought leaders. Additionally, Crow has allowed the institution to utilize space in an office park he owns for its summer program, provocatively titled “Forbidden Courses,” which aims to tackle controversial subjects in a way that elite universities may shy away from. While Crow has been a controversial figure due to his ties to Supreme Court Justice Clarence Thomas, The Wall Street Journal report indicated that he has consistently maintained that he never discusses pending cases with the Justice, keeping his personal and professional engagements separate.
The discontent with the current state of American higher education extends beyond Crow and his associates. Following Hamas’s October 7th attack on Israel and the subsequent war in Gaza, many prominent billionaires, including Marc Rowan and Bill Ackman, campaigned to remove Ivy League presidents who were too lenient on anti-Semitism on their campuses. As per the information provided in The Wall Street Journal report, such events have galvanized some of the country’s wealthiest individuals to search for alternatives that uphold free speech and intellectual diversity. In this light, UATX presents a compelling alternative for donors frustrated with an overwhelmingly progressive atmosphere at elite institutions.
The effort to launch the school was announced in the fall of 2021, spearheaded by a group of influential individuals, including venture capitalist Joe Lonsdale and journalist Bari Weiss. According to The Wall Street Journal, Lonsdale, a conservative who has recently donated to Donald Trump, has been a key figure in the school’s development, while Weiss is using her platform, the Free Press, as a challenge to the liberal orthodoxy of mainstream media.
Lonsdale and Weiss were not alone in their vision. Among the most significant backers is trader Jeff Yass, who has long advocated for school choice and is UATX’s largest financial supporter. Yass, as reported by The Wall Street Journal, contributed $35 million to the institution. In a statement, Yass expressed his desire for competition in higher education, stating, “Higher education needs competition. It is time for philanthropists to start new colleges in keeping with the way American learning institutions were founded.” His vision is one shared by other donors who see UATX as a necessary alternative to the current higher education landscape.
The University of Austin officially welcomed its first cohort of students last month, housed in a former department store located near the Texas Capitol. The school’s administration, as reported by The Wall Street Journal, emphasized that it is nonpartisan and committed to what it calls the “fearless pursuit of truth.” UATX has crafted a foundational curriculum that blends classical texts—students received a copy of Homer’s Odyssey upon enrollment—with an emphasis on entrepreneurship and modern skill development. The university’s mission is distinct in its focus on combining rigorous academic study with practical application, a balance that many elite institutions have failed to strike in recent years.
“I’m teaching a course next spring called Pathocracy, based on my next book, which I’m dedicating to all of you.
The subtitle is: ‘Why Elites Subvert Civilization.’”
— @shellenberger, UATX’s CBR Chair of Politics, Censorship, and Free Speech from today’s Q&A with our students pic.twitter.com/pB3ITbHAJH
— University of Austin (UATX) (@uaustinorg) October 8, 2024
In promotional material posted to its YouTube channel, UATX positions itself as a counterpoint to the chaos and unrest seen on many college campuses. As The Wall Street Journal report highlights, the video juxtaposes scenes of pro-Palestinian protests and encampments at other universities with a calm and civil seminar taking place at UATX. The video concludes with the stark message, “They burn, we build,” clearly signaling the school’s intent to provide an alternative to what it sees as a crisis in the academic world.
The founders and officials of UATX have not been shy about their ambitions. According to the report in The Wall Street Journal, some have pointed to the University of Chicago as a model, praising its long-standing commitment to free speech and rigorous debate. In a recent convocation speech, UATX President Pano Kanelos referred to both students and faculty as “pioneers” and “heroes,” underscoring the university’s mission to chart a new path in higher education. Kanelos, quoted in The Wall Street Journal, expressed his vision for UATX, stating, “What is truly historic is that which sends the trajectory of history, and lives lived within the stream of history, shooting in a direction other than that towards which they were tending.”
While UATX has attracted support from figures across the political spectrum, a number of its most prominent donors have strong conservative or libertarian ties. Peter Thiel, co-founder of PayPal and an outspoken critic of traditional education systems, made a smaller contribution to UATX. Thiel has been known for his efforts to encourage students to skip college altogether, further emphasizing his alignment with alternative educational models. Meanwhile, John Arnold, a former energy trader, and his wife, Laura, both advocates for criminal-justice reform, have also provided major funding to UATX. According to The Wall Street Journal, Alex Magaro, co-president of the Meritage Group investment firm, contributed $10 million to the institution in a demonstration of his commitment to fostering open debate and ideological diversity.
The timing of UATX’s fundraising has also been significantly influenced by recent events, particularly the turmoil on college campuses following Hamas’s attack on Israel on October 7, 2023. The Wall Street Journal report explained that fundraising accelerated after the Gaza war, as donors expressed concerns over the selective application of free speech principles at elite universities. Len Blavatnik, a major figure in finance and philanthropy, contributed $1 million through his family foundation in the wake of the Hamas attack but has since paused donations to his alma mater, Harvard University. The Wall Street Journal highlighted that Daniel Lubetzky, founder of Kind Snacks and son of a Holocaust survivor, was an early donor who has since become alarmed by the growing “us vs. them” mentality on university campuses.
Historian Niall Ferguson, another founder of UATX, noted how the conflict in Gaza helped solidify the belief among many donors that higher education was failing. “It took what happened in the wake of Oct. 7 on the major campuses to convince Wall Street, to convince people in Silicon Valley, that there really was a problem with higher education,” Ferguson told The Wall Street Journal. Such discontent has only bolstered UATX’s fundraising efforts, with the school planning to launch a larger campaign in January 2025.
Despite the financial backing, challenges remain for UATX. As The Wall Street Journal report pointed out, the institution is not yet accredited, a status it can only achieve after its first class of graduates. To alleviate concerns about the risks that prospective students are taking, the first cohort has been offered full-tuition scholarships valued at $130,000. This cohort is notably diverse, with more than 40% of students coming from Texas and a third of them being female, as detailed in The Wall Street Journal.
UATX is also focusing on establishing a strong science and engineering curriculum. Lonsdale, who chairs the university’s board, has donated land adjacent to Elon Musk’s SpaceX and Boring Company outside Austin, intending it to be used for a science and technology center. Executives from these companies are already involved in developing the curriculum, offering UATX students a direct connection to cutting-edge industries, as noted in The Wall Street Journal report.
As UATX continues to grow, its success will hinge on whether it can attract students and faculty who share its mission of fostering open debate and meritocratic achievement. Its ability to raise funds from high-profile donors, coupled with its commitment to challenging the status quo of higher education, marks UATX as a bold experiment in the evolving landscape of American universities.
