Shares of educational technology company Chegg have yet to recover from their plunge earlier this month. As you recall, its shares fell off a cliff after the company reported its first quarter results.
While Chegg beat analysts’ expectations for the first quarter of the year, it also issued a warning that didn’t fall on deaf ears: It warned that ChatGPT was hampering its ability to add new subscribers.
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“[S]Since March, we have seen a significant increase in student interest in ChatGPT. Now we think it’s having an impact on our growth rate of new customers,” 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 has also proven to be an incredibly popular cheating tool,” reported TechCrunch+.
AI might be the least of edtech worries by Anna Heim originally posted on TechCrunch
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