America's wealthy elite is preparing its kids for the AI era. Some wealthy families are turning away from traditional schools and seeking alternatives.

These parents argue that AI will reshape the economy and that old teaching methods can't keep up, the Wall Street Journal reports. They're choosing schools that focus on life skills, call teachers "guides" or "coaches," and use AI tutors that tailor the curriculum to each child.

Alpha School, founded twelve years ago in Austin, Texas, offers two hours of AI tutoring followed by project-based workshops. The AI platform tracks how engaged students are and adjusts lessons in real time. Tuition runs up to $75,000 a year. Every on-site learning guide earns a six-figure salary, according to spokesperson Anna Davlantes.

The school added eight new locations in 2025, including San Francisco and New York. Nearly two dozen more are planned for fall, in places like Palo Alto and Malibu. Alpha also sells homeschooling software and its competency-based curriculum. Many Alpha families in New York work in finance or run their own businesses, while Bay Area families tend to come from tech, Davlantes says. Billionaire Bill Ackman is reportedly among the school's high-profile fans.

San Francisco venture capitalist Shaun Johnson plans to enroll his son in Alpha's kindergarten. "We recognize that education is likely broken the way it is and there’s going to be entrepreneurs that try to fix it," he says, adding that AI-driven personalization is the main reason for his choice, not the technology itself.

Traditional schools still don't know what to do with AI

Two recent studies show how badly traditional education is struggling with AI. A Chinese study of more than 26,000 students found that homework done with AI was faster and scored higher, but exam performance dropped by up to 24 percent. About 81 percent of long-term users simply outsourced their thinking to the AI. A UC Berkeley study reached a similar conclusion.

Traditional schools have few answers for how students can use AI productively instead of letting it do their thinking. That's the gap providers like Alpha are targeting. They want to embed AI into the learning process deliberately rather than leaving it up to chance.

At $75,000 a year, though, only wealthy families can afford it. In this sense, schools like Alpha also reflect a growing wealth divide in the AI era. In San Francisco, even top earners with six-figure salaries can barely afford housing, while OpenAI alone reportedly created 75 multimillionaires last fall.

But outside formal education, AI is probably the biggest equalizer for learning access in years. Anyone with an internet connection now has a personal tutor that explains things patiently, adapts to individual needs, and is available around the clock. But using it well requires exactly the kind of skills that schools would need to teach first.