Shares of edtech firm Chegg nonetheless haven’t recovered from their dive earlier this month. As you might 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 capacity so as to add new subscribers.
The Alternate explores startups, markets and cash.
Learn it each morning on TechCrunch+ or get The Alternate publication each Saturday.
“[S]ince March, we noticed a major spike in scholar curiosity in ChatGPT. We now consider it’s having an impression on our new buyer development fee,” 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 might realize it as a spot to lease school textbooks, “it has additionally confirmed an extremely fashionable instrument for dishonest,” TechCrunch+ reported.
AI is perhaps the least of edtech’s worries by Anna Heim initially printed on TechCrunch