Elite California universities spending as much as $17M on Chat GPT, AI for college kids: ‘Completely jumped the gun’



Prestigious universities throughout California are shelling out hundreds of thousands of {dollars} on synthetic intelligence instruments like ChatGPT for college kids — at the same time as they lay off professors, The Put up has discovered.

The celebrated College of Southern California, a non-public analysis faculty, spent $3.1 million in late January on a partnership with OpenAI to safe ChatGPT licenses for 80,000 customers, together with pupils, college and employees. 

However professors at non-public USC, the place one 12 months of tuition prices practically $80,000, had been involved concerning the faculty’s spending priorities — particularly because it has laid off some 900 staffers within the purpose of eliminating an almost $200 million deficit, HigherED Dive reported in November.

“USC has advised college students it might probably’t afford to pay the true folks they trusted. As an alternative, it’s shopping for them a fairly toy,” a dozen college members wrote in a latest open letter to The Each day Trojan, obtained by The Put up.

“What sort of human dignity does this habits affirm? What sort of belief does it construct?”

AI has seen a pointy rise amongst US faculty college students. silverkblack – inventory.adobe.com

Andrew T. Guzman, provost and senior vice chairman for educational affairs at USC, defended the spending.

“This contains all consumer subscriptions and superior credit for deeper analysis utilizing the platform, whereas additionally offering knowledge privateness that customers weren’t getting with particular person subscriptions,” Guzman stated in a press release.

However USC is way from alone in spending huge on the rising tech.

California State College has rolled out the AI device to almost half 1,000,000 college students and school at a value of  $17 million.

Some colleges within the College of California system, together with UC Berkeley and UC Irvine, are making accounts available to college students, too.

critics are elevating eyebrows over the place of AI in larger training — warning it may inhibit studying and questioning the multi-million greenback price ticket as some colleges lay off professors.

“It goes towards what larger training needs to be about,” stated Lee Codding, 55, whose youngest little one is a scholar at San Diego State College, one in all 23 campuses within the CSU system.

“We’ve completely jumped the gun. I don’t assume it’s a good suggestion,” the native dad advised The Put up.

Whereas Codding acknowledged the significance of partaking with AI instruments, he warned that having a professional account — which, not like free variations, performs duties at a a lot larger capability — may inhibit essential considering.

“They’re in all probability doing it as a proactive measure to attempt to management it and I feel that’s a mistake,” he stated. “I’d moderately they lag behind a little bit bit than innovate into the void.”

“That’s some huge cash,” Codding added. “I’d moderately see that go into hiring extra college.” 

USC has spent practically 3 million on these accounts. Tada Pictures – inventory.adobe.com

Cal State is spending huge bucks on AI instruments whereas dealing with a $2.3 billion finances hole is simply “loopy,” he famous.

Within the first half of 2025, CSU paid practically $1.9 million to make ChatGPT Edu — OpenAI’s university-specific model of the chatbot — obtainable to 40,000 customers. 

Since then, the system has expanded the contract by an extra $15 million to cowl roughly 500,000 college students and school by way of July 2026, based on public information, LAist reported final 12 months. 

“I feel offering particular person AI accounts is overkill. I’m a giant fan of tech,” Codding stated. “However utilizing public cash to help non-public enterprise, I nonetheless assume there’s an issue with that.”

One other guardian, who has three kids attending USC, UC Berkeley and UCLA, additionally slammed the excessive value of the AI instruments.

UC Berkeley didn’t deal with questions of particular person monetary commitments to AI instruments. Getty Pictures

“I’d not like hundreds of thousands being spent on it. I don’t assume that’s right,” mother Saba Haseeb stated in an interview.

Haseeb stated public universities ought to make investments their cash in human assets, not simply synthetic intelligence.

“In the event that they’re changing professors with AI, then tuition needs to be seemed into, as a result of a variety of tuition goes towards professors’ incomes,” Haseeb stated. 

Having raised one physician and a lawyer, with one other little one getting ready for medical faculty, Haseeb stated universities needs to be extra clear about how new applied sciences are funded and used.

“It could be good in the event that they made the general public conscious that a number of the funding will likely be used for issues like AI and ChatGPT,” she stated. “Mother and father needs to be concerned to a sure diploma — at the least knowledgeable — about how that is going for use and applied.”

UC Berkeley didn’t present the person value breakdown for every of the AI instruments when requested by The Put up.

“AI instruments are included in beforehand licensed subscriptions,” a spokesperson stated. “The Google Gemini app and Zoom AI Companion are instruments which can be included by way of UC’s agreements with Google and Zoom.”

The college has 33,122 undergraduate college students and 13,029 graduate college students. All college students have entry to AI options in instruments already obtainable to them.



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