I don't have an informed opinion on Lambda School, but it seems as though most of the concerns raised in this article are true of universities as well, and in some cases, worse in universities:

Lambda makes money through some financial engineering : Ivy league schools are essentially hedge funds with their multibillion-dollar endowments

Lambda's curriculum is lacking : Most CS students are taught theory, but learn very few of the skills they'll actually need on the job ( e.g. application deployment, source code management, etc.)

Lambda inflates its job placement stats : This is never defensible, but also highly prevalent in both non-profit and for-profit higher education institutions.

I commend Austen for at least attempting to better align students' and educators' financial incentives.