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Chegg To Initiate Business Review Amid AI-Shift in Education Tech

2 months 2 weeks ago
Online-education company Chegg said it is conducting a business review and exploring alternatives such as selling the company or taking it private as it continues to lose subscribers to artificial-intelligence-enabled rivals. From a report: Chegg and other virtual-learning companies have ceded ground to generative-AI companies such as ChatGPT, which provides free alternatives to the homework help that Chegg charges $19.95 for to its subscribers. Although Chegg built its own AI products, the company has faced scores of canceled subscriptions. The business review comes as the company swung to a loss in the fourth quarter, with revenue falling 24%, and guided for lower-than-expected revenue for the first quarter. In November, Chegg said it would cut its workforce by an additional 21%. Chegg's shares have fallen 99% since its peak in 2021.

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Chegg Sues Google For Hurting Traffic With AI

2 months 2 weeks ago
Chegg has filed suit in federal district court against Google, claiming that AI summaries of search results have hurt the online education company's traffic and revenue. From a report: The legal move come nearly two years after former CEO Dan Rosensweig said students engaging with OpenAI's ChatGPT assistant were cutting into Chegg's new customer growth. Chegg is worth less than $200 million, and in after-hours trading Monday, the stock was trading just above $1 per share. Chegg has engaged Goldman Sachs and will look at strategic options, including getting acquired and going private, President and CEO Nathan Schultz told analysts on a Monday earnings call. Chegg's shares have fallen 99% since its peak in 2021.

Read more of this story at Slashdot.

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