Shares of edtech company Chegg still did not recover from their dive earlier this month. As you may recall, its stock fell off a cliff after the company announced its Q1 results.
While Chegg beat analysts’ expectations for the first quarter of the year, he also issued a warning that didn’t fall on deaf ears: he warned that ChatGPT was hampering his ability to add new subscribers.
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“[S]Since March, we have seen a significant increase in student interest in ChatGPT. We now believe this is impacting our rate of new customer growth,” said Chegg CEO Dan Rosensweig. said during the company’s first quarter earnings call.
Chegg is particularly vulnerable to competition from generative AI; although you may know it as a college textbook rental place, “it’s also proven to be an incredibly popular tool for cheating,” TechCrunch+ reported.
AI could be the least of edtech’s worries by Anna Heim originally published on Tech Crunch