Michael and Susan Dell fund 'AI-native' medical center with $750 million gift to University of Texas

NEW YORK (AP) — Billionaires Michael and Susan Dell are fueling the University of Texas at Austin's medical research ambitions with a $750 million gift that promises to improve patient care through artificial intelligence and increase health care options for the booming state capital.

The UT Dell Medical Center, announced Tuesday, is projected to open in 2030 as the crown jewel of a new 300-plus-acre advanced research campus. The university expects to break ground this fall on what school leaders are calling the country's first “AI-native” hospital.

The donation makes the couple the first University of Texas donors to give more than $1 billion, according to system officials, building on two decades of support for computer science education, the medical school and scholarships for students with the most significant financial need.

For Michael Dell, the founder and CEO of Dell Technologies whose net worth is estimated by Forbes at about $170 billion, the next step was to further expand his and his wife's investments in Central Texas. The computer magnate founded the company in 1984 as a UT-Austin pre-med student selling customized personal computers from his freshman dorm room. Health infrastructure needs became clear, he said, as the area's population about doubled in size.

“I was born in Texas. My wife was born in Texas. This is our home,” Dell told the Associated Press, adding that “building a stronger health system here, more innovation and helping to support the growth and stability of the region” is important.

The donation is among the largest ever in higher education philanthropy, following recent contributions such as Phil Knight's $2 billion pledge to Oregon Health & Science University's cancer center and Michael Bloomberg's $1.8 billion gift to cover Johns Hopkins University medical students' tuition.

From monitoring vital signs to triggering step-by-step care plans, AI is making inroads into health care at hundreds of hospitals.

With the launch of UT Dell Medical Center, however, Dr. Claudia Lucchinetti sees a rare opportunity: instead of retroactively applying new technologies to old hospital infrastructure, she said they can integrate them from the start. They will also collaborate with the University of Texas MD Anderson Cancer Center in Houston to offer top specialists for those with complex conditions.

Lucchinetti, the dean of Dell Medical School and senior vice president for medical affairs, said their model will use technology to support the patient-doctor relationship and make care “feel simpler and more human.” “Ambient" AI will make the hospital itself an “intelligent member of the care team,” she said, taking notes so that clinicians can treat patients more directly. She touted AI's ability to identify biometric patterns and early signs of cancer before they're obvious to the naked eye.

The goal, she said, is to move from a reactive and fragmented health system to one that is predictive and more seamless.

“We have the technology, the science and the understanding to do better. And what we’ve been missing is the ability to design a system around those capabilities from the start,” she said. "That’s the opportunity that Susan and Michael Dell have catalyzed.”

The gift will also support undergraduate scholarships, student housing and UT's Texas Advanced Computing Center, where officials are building the nation's largest academic supercomputer with Dell's AI infrastructure.

In a convocation address two years ago, Michael Dell encouraged medical school graduates to ensure AI models understand human ethics and make health care more equitable. He believes the technology will augment caregiving, create more precise treatments, accelerate scientific discoveries and apply those findings to real-world practices sooner.

“We have to figure out how to do this in a way that is responsible, reflects our values and beliefs, and ultimately enables humans to reach their full potential,” he told AP. “That's what we're all working on.”

The major contribution comes at a time when private support for higher education is falling to a dwindling pool of supporters.

Colleges raised a record $78 billion last year, according to the 2025 Voluntary Support of Education, but nearly 90% of that money came from just 2% of donors.

Rutgers University Associate Dean for Research Marybeth Gasman said she's excited to see such strong support for a public institution at a time when public funding is declining amid politicized attacks on higher education. She hopes the megagift inspires other donations, as she said decades-long patterns suggest that more giving occurs after high-profile individual contributions.

“Higher education, quite frankly, could really use it right now," she said.

UT-Austin officials are certainly hoping so. The Dells' gift kicks off a broader 10-year campaign to raise $10 billion for the university.

The donation comes on the heels of the Dells' $6.25 billion pledge to provide an incentive to claim new investment accounts under President Donald Trump's tax law for 25 million American children ages 10 and under. The “Trump Accounts” give $1,000 to every newborn, so long as their parents open one, and invests those funds in the stock market. The couple believes it is the largest single private commitment made to U.S. children.

Michael Dell said even a small sum makes a child more likely to enter college — “perhaps at the University of Texas or some other great school” — and eventually start a family or business. He welcomed the creativity he's seeing from other “Trump Accounts" funders. He's seen cities offer additional investments for community service and good grades. He noted that hedge fund managers Brad Gerstner and Ray Dalio have seeded accounts in Indiana and Connecticut, respectively.

“I think you'll see many more gifts at the local community level and some other big ones at the national level,” he said.

But he dismissed the suggestion that, between the “Trump Accounts” and this University of Texas gift, there's been a shift in his and his wife's philanthropy toward more selective, bigger bets.

“Certainly, we’ve been very blessed and we have a lot of resources,” he said. "So, we're looking for things that have significant impact.”

Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

FILE - Students walk through the University of Texas at Austin campus near the school's iconic tower, Sept. 27, 2012, in Austin, Texas. (AP Photo/Eric Gay, File)

Michael Dell, left, and Susan Dell arrive at the 12th Breakthrough Prize Ceremony on Saturday, April 18, 2026, at Barker Hangar in Santa Monica, Calif. (Photo by Jordan Strauss/Invision/AP)

LONDON (AP) — Apple's next CEO John Ternus is a company veteran who rose through the iPhone maker's hardware engineering ranks but until now has maintained a low profile.

Ternus will take over as chief executive in September for Tim Cook, who turned Apple into a $4 trillion tech colossus during his 15-year run after the death of co-founder Steve Jobs.

Ternus faces challenges that will force him to step out of his comfort zone in hardware engineering. Beyond finding ways to keep Apple competitive in the artificial intelligence race, he will need to navigate supply chain questions and relationships with figures like President Donald Trump, who offered public praise for his predecessor on Tuesday.

Although Cook is handing over the CEO reins at Apple, he is widely expected to help the Cupertino, California, company maintain a good relationship with Trump after he shifts over to his new role as executive chairman.

Ternus, 50, has spent almost his entire career with Apple. He joined the company 25 years ago and has spent the past five years overseeing the engineering that underlies the iPhone, iPad and Mac.

It made him the prime contender to succeed Cook who on Monday, when Apple announced the change in leadership, hailed Ternus as “without question the right person to lead Apple into the future.”

Ternus worked on some of Apple's signature products under Cook, including the Apple Watch, AirPods and Apple Vision Pro. He was also involved in the MacBook Neo, "arguably one of the most disruptive products” that Apple has released in a while, said Ben Wood, chief analyst at CCS Insight.

“This mentorship will undoubtedly ensure a smooth transition, and initially, I expect very few changes to the company’s strategy,” Wood said.

The appointment appeared to be carefully timed, following Apple's 50th anniversary celebrations and ahead of its annual WWDC developers conference in June.

The change also arrives at a pivotal time for the company. While Cook led Apple through an iPhone-fueled era of prosperity, Apple has fallen behind in the AI race. Apple has stumbled in its efforts to deliver new features built on AI, as was promised nearly two years ago.

“The challenge for the new CEO is really to make sure Apple is able to crack AI as the new user interface and reinvent human machine interaction," Forrester Research analyst Thomas Husson said.

Wood says attention at WWDC will be on the new CEO's AI strategy, and what the company will do next after turning earlier this year to Google — an early leader in the AI race — to help make the iPhone’s virtual assistant Siri more conversational and versatile.

“A big strategic question is how far Apple will invest in building its own AI platform versus relying on other companies’ models and platforms,” Wood said.

Apples shares fell more than 2% during Tuesday's trading, signaling some investors may have doubts about whether Ternus's focus on hardware products has prepared him for the AI challenges he will confront as the company's next CEO.

But building a device well-suited for the AI age is among the most critical missions as technology makes its most significant pivot since Jobs unveiled the first iPhone in 2007. That's why some analysts believe Apple's board saw Ternus' hardware background as a key advantage as it tries to develop an AI-powered device that could eventually supplant the iPhone as its top-selling product.

That is something that Jony Ive, the former Apple design guru, who shaped the look of the iPhone, is trying to do after his startup, io Products , was acquired last year for $6.5 billion by ChatGPT maker OpenAI.

Apple also faces a turbulent market amid geopolitical uncertainty, Wood said.

"The consumer electronics industry faces a perfect storm, with memory chip shortages and the war in the Middle East having widespread implications for consumer confidence. Apple will also need to decide how much it wants to continue its deep reliance on China for manufacturing,” he said.

Being Apple CEO will also require soft skills including developing relationships with important figures. Cook cultivated ties with Trump as he navigated the company through business challenges including Trump's trade and tariff war targeting countries in Asia, where Apple has extensive manufacturing supply chains.

Trump noted his relationship with Cook in a social media post on Tuesday morning, writing that “it began with a phone call” at the beginning of his first term, when Cook asked for help with “a fairly large problem that only I, as President, could fix.”

“That was the beginning of a long and very nice relationship,” Trump said.

Ternus is not well known outside of the Apple universe. He joined the company in July 2001, according to his LinkedIn profile, which does not have any posts.

Before joining Apple, he spent four years as a mechanical engineer at Virtual Research Systems. He graduated in 1997 from the University of Pennsylvania, where he was a member of the swim team and for his senior project developed a mechanical feeding arm for quadriplegics controlled by head movements.

In a 2024 commencement speech to the university's engineering school, Ternus said he was intimidated when he first started working at Apple and wasn't sure he belonged. He learned to “always assume you’re as smart as anyone else in the room but never assume you know as much as they do.”

“There will always be new skills to master and new people to learn from,” he said.

Ternus said in Apple's announcement that he was "humbled to step into this role, and I promise to lead with the values and vision that have come to define this special place for half a century.”

AP Technology Writer Michael Liedtke contributed to this story from Berkeley, California.

FILE - John Ternus, Apple's V.P. of Hardware Engineering, discuss the latest development for the iPad Pro during an event to announce new products Tuesday Oct. 30, 2018, in the Brooklyn borough of New York. (AP Photo/Bebeto Matthews, File)

FILE - Apple's John Ternus speaks during an announcement of new products at the Apple Worldwide Developers Conference in San Jose, Calif., Monday, June 5, 2017. (AP Photo/Marcio Jose Sanchez, File)