Shares of edtech company Chegg still haven’t recovered from their dive earlier this month. As you’ll recall, its stock fell off a cliff after the company reported its Q1 results.
While Chegg beat analyst expectations for the first quarter of the year, it also sounded a warning that didn’t fall on deaf ears: It warned that ChatGPT was hindering its ability to add new customers.
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,[S]Since March, we have seen a significant increase in student interest in ChatGPT. We now recognize that this is having an impact on our new customer growth rate,” Chegg CEO Dan Rosensweig said during the company’s first-quarter earnings call.
Chegg is particularly vulnerable to competition from generative AI; While you may know it as a place to rent college textbooks, “it’s also proven to be an incredibly popular tool for cheating,” TechCrunch+ reported.
AI may be the least of edtech’s worries by Anna Heim Originally published on TechCrunch