Skip to main content

Austen Allred

Background​

  • Co-founder and CEO of Bloom Institute of Technology (formerly Lambda School), an education company offering online coding bootcamps with job placement focus
  • Founder of Gauntlet AI (2024) - initiative focused on intensive, in-person AI training
  • Pioneered the use of Income Share Agreements (ISAs) as a tuition model where students pay percentage of future salaries after securing jobs
  • Gained attention in 2017 for living in his car while participating in Y Combinator accelerator
  • Co-founded media platform Grasswire and co-authored growth hacking textbook "Secret Sauce"
  • Professionally fluent in Russian

Current Role & Projects​

  • Gauntlet AI Founder: Running intensive 10-week AI training program with 100 hours/week commitment
  • Program Leadership: Working closely with Ash Tilawat (Head of Product) to develop curriculum and manage operations
  • Austin AI Ecosystem: Active in building Austin's AI training and talent development infrastructure

Professional Experience​

  • Bloom Institute of Technology/Lambda School: Co-founder and CEO focusing on short-term intensive training in web development, data science, backend engineering
  • Education Innovation: Focus on alternative education models and job placement outcomes
  • Startup Experience: Multiple ventures including Grasswire media platform

Gauntlet AI Program Details​

  • Structure: 10-week intensive training program
  • Commitment: 100 hours per week training
  • Support: All-expenses-paid for participants
  • Location: Austin, Texas office
  • Hiring Integration: Connected to Joe Liemandt's talent acquisition strategy for Alpha ecosystem

Alpha Ecosystem Insights (from July 2025)​

  • Hiring Partner Feedback: Gauntlet graduates face complaints about emotional intelligence and professional conduct
  • Behavioral Interviews: Implemented new screening for emotional intelligence after hiring partner complaints
  • Specific Issues: Roger identified as problematic hire with poor professional behavior
  • Industry Context: Notes that while technical code quality issues exist across Silicon Valley, communication and hierarchy problems are more unusual

Controversies & Legal Issues​

  • CFPB Action (April 2024): Consumer Financial Protection Bureau issued order against BloomTech and Allred for misleading students about loan costs and job placement rates
  • Penalties: Banned from student-lending activities for ten years, BloomTech barred from consumer lending
  • Industry Scrutiny: Required to pay civil penalties and modify student agreements

Strategic Insights​

  • Tech Industry Perspective: Believes enterprise tech code bases are typically poor quality, but Silicon Valley companies compensate with top-tier engineering talent
  • Organizational Analysis: Recognizes Alpha's dual problems of poor technical infrastructure AND poor communication/hierarchy
  • Talent Development: Focus on identifying and developing high-agency individuals for tech ecosystem

Connection to Gary/Tim Network​

  • Gauntlet Integration: Gauntlet serves as talent pipeline for Joe Liemandt's various ventures (Alpha Schools, ESW Capital projects)
  • Cost Efficiency: Joe funded Gauntlet partly to replace expensive dev agency contracts (multi-millions annually)
  • Quality Control: Working to address professional conduct issues among graduates entering corporate environments

Interactions​

  • 2025-07-22 (Indirect): Tim Joo had extensive conversation with Austen and Ash Tilawat about Alpha organization dysfunction, hiring partner feedback, and Joe Liemandt's business model. Austen provided insights into industry context and confirmed firing of Jason Applebaum. Discussed behavioral interview implementation to screen for emotional intelligence issues among Gauntlet participants.

Strategic Value​

  • Talent Pipeline: Controls access to intensive AI training program that feeds into Austin tech ecosystem
  • Industry Intelligence: Deep understanding of education technology challenges and alternative credentialing models
  • Operational Insights: Experience with scaling intensive training programs and managing student outcomes

Notes​

  • Represents successful model of alternative education despite regulatory challenges
  • Valuable source of industry intelligence about technical talent development and professional conduct standards
  • Key figure in Austin's emerging AI education ecosystem
  • Has experience navigating regulatory scrutiny while maintaining business operations

Transcripts​

Transcript IDDateSummary
2025-04-08-alpha-school-strategy-meeting-tour2025-04-08Strategic discussions with Joe Liemandt, Mike Maples Jr. and team on AI concepts and platform development