They operate like coding bootcamps. They hire tens of thousands of random grads, put them through a “bootcamp” of six months and contract them out to Fortune 500 firms. They also have these kinds of exit clauses where you have to pay them if you quit early. These people often have no CS backgrounds.
These bootcamps will also end up shifting to India and turning into outsourcing firms. Nothing more nothing less. It can absolutely work and be huge but as you scale the quality drops and it’s not a panacea.
If I were the lambda school CEO I’d just start a remote first outsourcing firm in India and cut to the chase.
If I were an IT service company CEO I’d rebrand myself as “disrupting education” to get some of that sweet VC $.