The school in Karlsruhe was founded by the Grand Duke of Baden whom Gude had good relations with. Because of this fact Gude received better pay than at the Düsseldorf Academy, had spacious and rent-free accommodations and was given generous periods of leave which allowed him to travel in the summer to perform studies for future paintings. Gude served as the director of Karlsruhe from 1866 to 1868 and again from 1869 to 1870, where he introduced several of his own educational principles designed to develop pupil's individual talent. But Gude's reign as director at Karlsruhe was not without resistance to his methods, and it is this opposition that he cites as his reason for visiting the Berlin Academy of Art that as early as 1874 in search of better conditions. Because of Gude's visits to Berlin, his relation with the Grand Duke became strained as the Grand Duke felt that the concessions he had made to Gude were so great that Gude should be grateful and not look for a professorships elsewhere. Gude remained at Karlsruhe for six more years after his first visits to the Berlin Academy of Art, but in 1880 he decided to retire from the Karlsruhe school to take up a position in Berlin.