Students and recent grads are turning university research and hackathon projects into high‑growth AI companies, sometimes rejecting large offers from established firms. Two 22‑year‑old researchers who developed the OpenChat model declined an Elon Musk offer and instead built a brain‑inspired reasoning system that outperformed larger models on abstract reasoning tests. Separately, Brendan Foody and co‑founders dropped out of college to scale Mercor, an AI recruiting startup that raised $350 million and reached a $10 billion valuation. These cases highlight universities’ role as talent pipelines and incubators: academic labs and campus communities produce algorithms and founders that immediately influence the commercial AI landscape, complicating recruitment, IP and partnerships for higher‑ed institutions.