Coursera and Udemy both launched during the MOOC boom of the early 2010s.

Allison Shelley/Complete College Photo Library

To keep pace with advances in generative artificial intelligence technology, two big online learning companies are planning to merge in a deal valued at $2.5 billion.

Coursera announced its plans to absorb Udemy in a news release Wednesday; both companies launched during the massive open online course provider boom of the early 2010s. Coursera, which offers a variety of courses, certifications and degrees, expects the all-stock merger to be finalized by the second half of 2026 and to generate more than $1.5 billion in annual revenue.

Combining the two companies is also estimated to save $115 million in operating costs over the next two years and allow for sustained investment in “AI-driven platform innovation, rapid product development, and durable growth initiatives,” according to Coursera’s statement.

Since Open AI launched ChatGPT three years ago, nearly every industry has moved to incorporate generative AI into its operations, and higher education is no exception. Although still contentious, students and faculty are increasingly using generative AI to help with research, writing and studying; a number of universities have launched campuswide AI partnerships with technology companies. In addition, learning management systems are touting their new AI capabilities, and employers say they want AI-ready graduates.

Greg Hart, CEO of Coursera, said the companies are merging to better help learners, instructors, and enterprise, university and government customers keep up with the changes.

“We’re at a pivotal moment in which AI is rapidly redefining the skills required for every job across every industry. Organizations and individuals around the world need a platform that is as agile as the new and emerging skills learners must master,” he said in the release. “By combining the highly complementary strengths of Coursera and Udemy, we will be in an even stronger position to address the global talent transformation opportunity, unlock a faster pace of innovation, and deliver valuable experiences and outcomes for our learners and customers.”