Technology

Why Wealthy Families Are Paying $75,000 a Year for AI Schools — and What We Don't Yet Know About Them

Martin HollowayPublished 4w ago4 min readBased on 7 sources
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Why Wealthy Families Are Paying $75,000 a Year for AI Schools — and What We Don't Yet Know About Them

Why Wealthy Families Are Paying $75,000 a Year for AI Schools — and What We Don't Yet Know About Them

Private schools built around artificial intelligence are beginning to attract affluent American families, with some charging as much as $75,000 annually for the youngest students. The Verge reported in July 2026 that schools like Alpha School and Forge Prep are leading this trend, both betting that AI tutoring software can handle most of the everyday teaching work.

How These Schools Work

Alpha School, based in San Francisco and found at alpha.school, calls its approach "2 Hour Learning." The idea is simple: students finish their main academic subjects — reading, math, science — in just two hours per day, guided by AI software that adapts to each child's pace. The rest of the day is left open for other activities. The school serves kindergarten through 8th grade at most locations, though some campuses go through high school. Co-founder MacKenzie Price has said she wants to avoid controversial social topics in the classroom. A venture capital investor named Shaun Johnson, who plans to enroll his son there, told the Wall Street Journal that Alpha's kindergarten costs $75,000 per year.

Forge Prep, located in New Jersey and online at forgeprep.org, takes a different approach. It serves grades 5 through 12 and focuses on having students build actual business projects. The school says graduates will have received $200,000 in investment funding for their ventures. Annual tuition runs between $24,000 and $36,000. Forge Prep will start its first class of 30 students in the fall of 2026. Before the school even opened its doors, the Wall Street Journal reported that it had received 600 applications. The school has even created an "AI Head of School" page on its website — essentially an AI character based on the school's founding ideas — which shows how central the AI story is to its marketing.

The Demand Is Real. The Results Are Not Yet Known.

The application numbers and family interest are genuine. But high demand tells us nothing about whether these schools actually teach children better than traditional schools do.

This gap is significant. The Verge found that schools like Forge Prep do not share how well their students actually perform academically. There is no public evidence that AI-guided private schools of this type produce better learning outcomes than regular schools. Parents spending five or six figures per year are making a bet on an unproven teaching method. That is entirely their choice to make, but it deserves to be stated plainly.

Lessons From Edtech's Past

The broader picture here is a pattern we have seen many times before in education technology. Earlier generations of tech companies promised that learning management platforms, online courses, tablets in every classroom, and software that adapts to each student's pace would transform how children learn. Some of these tools did eventually prove useful in specific ways; many disappeared as the reality sank in that real learning is simply difficult to engineer.

These AI schools are very early-stage operations. Forge Prep has not yet held its first class. Alpha School's claim that rigorous learning can fit into two hours is attention-grabbing, but neuroscience research on how people actually learn — through repeated practice and spacing out what you study over time — does not obviously support that timeline, though it is theoretically possible that smarter AI could change the calculation for certain students. We simply do not know yet.

What we can observe is the market these schools are reaching. The fact that wealthy families will pay $25,000 to $75,000 annually for an untested AI-focused curriculum suggests one of two things: either they are deeply unhappy with existing private schools, or they belong to a group of early adopters who believe that artificial intelligence will reshape what jobs exist so quickly that traditional education and degrees will become less important before their children graduate. A venture capitalist spending $75,000 a year to send his kindergartner to an AI school is not simply buying a better education; he is placing a bet on what the economy will look like in 15 years.

Whether that bet turns out to be right is a separate question. For now, these schools amount to a real-world experiment — small in the number of students, high in tuition revenue, and so far free from the same reporting and accountability rules that apply to public schools. The actual results, when they eventually become available, will be important to watch.