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 major spike in pupil curiosity in ChatGPT. We now imagine it’s having an affect on our new buyer development charge,” Chegg CEO Dan Rosensweig stated in the course of the firm’s Q1 earnings name.
Chegg is especially weak to competitors from generative AI; though you could comprehend it as a spot to hire faculty textbooks, “it has additionally confirmed an extremely well-liked device for dishonest,” TechCrunch+ reported.
AI is perhaps the least of edtech’s worries by Anna Heim initially revealed on TechCrunch
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