UW is #6 in the nation in CS (US News & World), #48 in national universities (US News & World) and #26 in global rankings (Times Higher Education Rankings)...

This school is not UW though, is it. Who, specifically, is going to teach at this new institute since UW profs are already at capacity and Tsinghua profs are in China. They certainly are not funding any new research here. How can you have a graduate institute in technology with no research, pHds, or even undergrads? What are the diploma's going to say? GIX, UW, Tsinghua, Microsoft?

You could make this argument for any nascent learning institution. Obviously, they're going to do what anyone does when starting a school: pull respected faculty from other schools, start new research programs and import research-in-progress if possible, hire PHDs and other lecturers, and eventually develop an undergraduate program.

And I'd guess that since the Global Innovation Exchange will be the name of the school, that's what the diplomas will say too.

You mean like the University of Washington? (tied for #6 for CS in the latest US News rankings)

University of Washington might have a top CS department, but this institute is not teaching CS or even STEM. This sounds like a fluff school for rich families that want their kids in the US. Microsoft execs will control a complete immigration pipeline from student visa through green card.

If it's as you describe, then I don't see Microsoft being the only firm benefitting. Amazon, Adobe, Expedia, Facebook, Google, Nordstrom, Redfin, Starbucks, and others will jump at that chance as well, I'm sure.

Maybe they'll help to make Seattle more affordable again. I don't want this place to become another SF.

That ship has sailed; this won't do anything to alleviate that. Seattle will never be affordable again while homes are in such short supply. Even if salaries were depressed here, people moving here from California would continue to raise the cost of living.