This is the latest prestigious university in the United States to seek over a billion dollars from alumni - with Harvard University seeking $2.3bn and Columbia University $2.2bn.

Such large-scale additional funding hugely outstrips appeals by universities in the United Kingdom. For example, a 10-year fund-raising initiative at the University of Oxford has made £200m.

The fund-raising initiative at MIT has received a starting donation of $100m from a former student, a gift that is the largest ever single donation from an individual received by the university.

Stock-market crash

The donation was made by Kenan Sahin, founder of a software company and MIT graduate, who said that he wanted "nothing in return" for his contribution.

The university, which has 10,000 graduate and undergraduate students, says that the funds will be targeted at three main areas - research, scholarships and buildings.

The university will be hoping for better timing with the announcement of its appeal for funds. MIT's last major fund-raiser was launched in 1987 in the week before a stock-market crash damaged the confidence of corporate donors.