The donation from Peter Lewis is the largest single monetary gift on record at the university.
Lewis says he added the extra million so he could top Princeton's previous record -- $100 million given in 1996.
That donation came from Hong Kong developer and alumnus Gordon Wu.
Lewis graduated from Princeton in 1955 and is the chairman of auto insurer Progressive Corporation.
His donation will support the construction of a new performing arts center and will expand the undergraduate art faculty by 50 percent.
The Associated Press