What They Did
2U acquired Trilogy Education for $750 million in 2019 to run coding bootcamps through university partnerships. Trilogy operated intensive programs teaching web development, data science, and cybersecurity.
How LLMs Killed Them
AI tools automated entry-level coding tasks, reducing demand for bootcamp graduates. Why pay $10-15K for a coding bootcamp when AI can write code and entry-level developer job postings have dropped 67% since 2019?
Timeline
- 2023-2024: Bootcamp enrollment dropped 40%.
- Revenue in the Alternative Credential Segment declined 23.3%.
- December 2024: 2U made a "bombshell announcement" to exit the bootcamp sector entirely — did not sell the business, simply shut it down.
By the Numbers
- $750M acquisition written off entirely
- Enrollment dropped 40%
- Revenue declined 23.3%
- Entire bootcamp division shut down
- Entry-level developer jobs down 67% since 2019