Two giants, one problem: why Coursera and Udemy had no choice but to merge
Coursera and Udemy finalized their merger on May 11, 2026, creating the largest online learning platform in the world. The two companies, long-time competitors, now operate under a single structure, combining over 290 million learners, 18,000 corporate clients, and 95,000 instructors. The deal was announced in December 2025 as an all‑stock transaction, valuing the merged company at around $2.5 billion.
The merger comes at a time when the online course market is undergoing significant change. In recent years, user behavior has shifted from traditional formats toward more flexible and personalized self‑learning methods, largely driven by generative AI and free resources.
AI is changing how people learn
The rise of generative AI tools such as ChatGPT, Claude, and Gemini has had a noticeable impact on online education. According to a 2024 McKinsey report, 60% of respondents prefer using AI for self‑learning instead of going through long video courses.
AI provides instant explanations and guidance, adaptive study plans, and personalized examples. Traditional platforms struggle to match this speed and flexibility at scale. The difference, roughly speaking, is like listening to lectures versus having a private tutor available 24/7. It’s no surprise that many people choose to self‑learn with AI, putting pressure on Coursera’s and Udemy’s business models. Udemy instructors report 30–67% drops in revenue since the rise of AI tools, with non‑tech courses hit the hardest.
YouTube as a temporary alternative
The decline in paid‑course revenue directly affects instructors. Complaints about falling sales have been piling up in Udemy communities for years. The platform has worsened the situation by systematically reducing instructors’ share of subscription revenue: from 25% in 2023, to 20% in early 2024, 17.5% in January 2025, and 15% in January 2026 — a 40% reduction in three years. According to Class Central, this policy cost instructors about $30 million in 2024 alone.
When income from a paid platform dries up, the logical step is to look for an audience elsewhere. For many course creators, that means YouTube. The audience there is vastly larger, and ad revenue still provides some return, even if modest.
But YouTube is not a solution — more of a temporary refuge. The migration itself is a symptom of a deeper problem in the paid‑online‑learning model. According to YouTube Learning Initiative data, educational content on the platform is growing by 22% annually. However, this doesn’t mean course creators earn more. Ad revenue for educational content typically ranges from $5–12 per thousand views, which rarely covers the production costs of high‑quality courses.
The reasons behind the merger
Official statements from both companies highlight the opportunity for a broader catalog, faster innovation, and better service for corporate clients. But the merger can also be seen as a response to pressure coming from several directions at once.
Growth in the edtech sector slowed significantly after the pandemic. Udemy’s consumer segment has been declining since 2021, with consumer revenue dropping to $62.9 million in Q3 2025 — the lowest level since 2019. Since its IPO in 2021, Udemy has lost over 80% of its market value. AI and free resources are attracting more people who previously would have paid for a course. In this environment, both companies need cost optimization and a larger catalog to retain users.
What changes for users
At this stage, there are no changes to content access, certificates, or subscriptions. Coursera and Udemy will continue to operate as separate platforms while an integration plan is developed.
In the longer term, the goal is a unified catalog with personalized skill pathways and deeper integration of AI tools. The idea is for the platform to offer not just video courses, but a combination of interactive tasks, AI‑based recommendations, and closer collaboration with employers. Whether this will materialize or remain a corporate promise remains to be seen.
Andrey Hristov