AI might be the least of edtech's worries - TechCrunch
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AI might be the least of edtech's worries - TechCrunch
Shares of edtech company Chegg still haven’t recovered from their dive earlier this month. As you may recall, its stock fell off a cliff after the company reported its Q1 results.
While Chegg beat analyst expectations for the first quarter of the year, it also raised a warning that didn’t fall on deaf ears: It warned that ChatGPT was hindering its ability to add new subscribers. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. “[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 said during the company’s Q1 earnings call.
Chegg is particularly vulnerable to competition from generative AI; although you may know it as a place to rent college textbooks, “it has also proven an incredibly popular tool for cheating,” TechCrunch+ reported.
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