Chegg, an e-learning company, is facing unprecedented challenges due to the rise of AI, as the spread of ChatGPT has led to a sharp decline in the number of subscribers to its services. For decades, Chegg has been the go-to destination for students to get answers to academic questions and homework support, but the advent of AI has changed the game.
As more and more students turn to ChatGPT for free and instant answers, Chegg has seen its market value plummet, with its stock price falling dramatically and the company losing over $14.5 billion in value. This has been reflected in a significant decline in the number of subscribers, as students have become more comfortable using ChatGPT than Chegg’s paid services.
In an attempt to adapt to this new reality, the company launched its own AI product, Cheggmate, in collaboration with OpenAI to provide an enhanced AI-based service, but this move has yet to see the desired recovery.