If anyone is struggling with getting this project up and running with latest Java SDK and IntelliJ, read this.

I found this solution in the gradle issue tracker on github.

1. Install the 'Choose Runtime' plugin through the plugins window.

2. Start the IDE, use Help | Find Action (Ctrl+Shift+A or Cmd+Shift+A on Mac), type "Choose Runtime", press Enter.

3. Select the version to install, the higher the number after b, the more recent is the version. It makes sense to install the most recent version or the version you were asked to try by JetBrains staff. Installing old runtime versions may render your IDE unusable or introduce new issues.

4. Click the Download button and wait until the file with JetBrains Runtime is downloaded.

5. Once download is finished, click the Install button, the file will be unpacked into idea.config.path\jdks location and the full path to this JDK will be saved into idea.config.path<product>.jdk file, for example: C:\Users\serge.IntelliJIdea2017.1\config\jdks\jbsdk8u152b819.1_windows_x64. IDE will automatically restart.

6. Verify via About dialog that the new runtime is used. Notice the vendor (should be JetBrains s.r.o) and the release number (should correspond to the number after b in the file you've downloaded).

7. If the JDK version in the About dialog doesn't match or didn't change, see below. Most likely, you have an environment variable configured which has the priority over the <product>.jdk file. Remove any environment variables affecting IDE runtime selection and restart.

This solution lets me launch the Web App Chris Ramacciotti made and follow the tutorial. Chris or Craig Dennis , if you read this, please consider updating this tutorial to work with newer gradle versions and SDK's. I spent several hours trying to get this to work with newer Gradle's and SDK's and it just wouldn't work.