Mon. Jul 15th, 2024

Shares of edtech firm Chegg nonetheless haven’t recovered from their dive earlier this month. As you could recall, its inventory fell off a cliff after the corporate reported its Q1 outcomes.

Whereas Chegg beat analyst expectations for the primary quarter of the yr, it additionally raised a warning that didn’t fall on deaf ears: It warned that ChatGPT was hindering its capability so as to add new subscribers.

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“[S]ince March, we noticed a big spike in pupil curiosity in ChatGPT. We now consider it’s having an impression on our new buyer development fee,” Chegg CEO Dan Rosensweig mentioned throughout the firm’s Q1 earnings name.

Chegg is especially susceptible to competitors from generative AI; though you could realize it as a spot to lease school textbooks, “it has additionally confirmed an extremely standard software for dishonest,” TechCrunch+ reported.

AI is perhaps the least of edtech’s worries by Anna Heim initially printed on TechCrunch

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