Shares of edtech firm Chegg nonetheless haven’t recovered from their dive earlier this month. As it’s possible you’ll recall, its inventory fell off a cliff after the firm reported its Q1 outcomes.
While Chegg beat analyst expectations for the first quarter of the 12 months, it additionally raised a warning that didn’t fall on deaf ears: It warned that ChatGPT was hindering its skill so as to add new subscribers.
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“[S]ince March, we saw a significant spike in student interest in ChatGPT. We now believe it’s having an impact on our new customer growth rate,” Chegg CEO Dan Rosensweig stated throughout the firm’s Q1 earnings name.
Chegg is especially weak to competitors from generative AI; though it’s possible you’ll understand it as a spot to lease faculty textbooks, “it has also proven an incredibly popular tool for cheating,” Ztoog+ reported.
AI might be the least of edtech’s worries by Anna Heim initially printed on Ztoog