Uber's reported poaching of workers from Carnegie Mellon University is actually a great thing for all involved, Silicon Valley insider Dan Rosensweig said Monday.
The taxi cab service app partnered with Carnegie Mellon earlier this year to develop driverless car technology and has since lured away about 40 people from the institution, according to reports.
"This is an opportunity for the institution to raise its profile," said Rosensweig, CEO of online student services company Chegg and former chief operating officer at Yahoo.
"They're considered the best in the world for robotics, so good for Uber, good for these people. It's a free market economy."
According to The Verge, Uber hired several high-ranking employees of Carnegie Mellon's National Robotics Engineering Center, grabbing about a third of the center's staff.
"They took all the guys that were working on vehicle autonomy—basically whole groups, whole teams of developers, commercialization specialists, all the guys that find grants and who were bringing the intellectual property," a person who was there during the departures told The Verge.
Read More Uber casts $50 billion shadow over public markets
"My understanding by talking to the people there is the timing of this may not have been ideal but this really will continue to raise the profile of the institution," Rosensweig said in an interview with CNBC's "Closing Bell."
"You're going to see an influx of students wanting to go to this school. You're going to see an influx of professors wanted to be associated [with] it," he said.
He also thinks Carnegie Mellon and Uber will be now working closer together, not further apart.
"This is really the best where you get great institutions working in conjunction with really cool and interesting companies who are trying to change the world."
Rosensweig expects an announcement within the next few weeks about Uber and Carnegie Mellon investing in the city of Pittsburgh, where the university is located and where Uber is conducting its work.
Read MoreDo 'unicorns' like Uber point to a tech bubble?
Read More