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After a summer of unexpected setbacks and amid a growing chorus of doubt, Udacity CEO Sebastian Thrun on Tuesday dismissed the idea that his company's model for high-quality, low-cost education isn't working.

Speaking to Information Week, Thrun said the MOOC provider has almost "found the magic formula" for how to produce and run its online courses. Udacity hit a major snag last month after disappointing results led one of its two university partners, San Jose State University, to pause its partnership. According to a leaked report, students enrolled in the $150 classes provided by Udacity performed much worse than their peers in traditional courses -- especially in remedial math. Thrun maintains the data was published "in an incomplete form, with a very strong bias," and that results from summer courses will show that more than half of the students passed their courses.

Thrun said the numbers should provide an incentive for San Jose State to resume the partnership in 2014.