The MIT Media lab is operated by its researchers, not the MIT administration, and according to Wikipedia, is primarily funded through outside companies.
"It is as part of this PR campaign that Bin Salman’s visit should be viewed. In exchange for cash, elite universities offer the veneer of a progressive agenda. For instance, Bin Salman’s foundation, MiSK, was accepted as a “member company” to MIT’s Media Lab in 2017, which requires a minimum annual contribution of $250,000 (with a three-year commitment) to the lab. In return, MiSK receives access to the lab’s personnel, technology, and intellectual property." https://www.theguardian.com/commentisfree/2018/mar/30/elite-...
The MIT administration overall is incredibly lawsuit/risk averse after a bunch of heavy settlements, such as the Shin case, the sodium case, and the Wellesley girlfriend stabbing.