Chegg Inc., an educational guidance and tutoring software, lost nearly 38% of its stocks following their CEO’s warning that ChatGPT, an OpenAI AI chatbot, is a serious threat to the growth of their business. Chegg’s main source of revenue is their subscriptions, which starts at $15.95 a month, which is now in jeopardy of students obtaining the same advice for free from the AI chatbot.
During their first quarter earnings, Chegg’s CEO Dan Rosensweig mentioned that there was an increased demand of ChatGPT since March, and it started to affect the company’s new customer growth rate. The remarks, along with the prediction of lower profits this quarter, caused a massive drop in the company’s stocks.
The CEO also said that the current subscribers’ retention rate is still high and insists that the company will embrace the chatbot AI “aggressively and immediately”. He comments that he has seen many tech platform shifts such as the internet, mobile and cloud, and believes that the AI is the next big shift.
Chegg Inc. is an American educational technology company that provides great educational guidance and tutoring software. This company’s main source of income is subscriptions, which start at $15.95 a month. It offers online guidance for students taking tests and writing essays.
Dan Rosensweig is the CEO of Chegg Inc. He has been in charge since February 2018. With a long career in the tech industry, Rosensweig has seen and adapted to many tech advances from the internet to the mobile to the cloud. Following the increased demand of ChatGPT, he has stated that the company will embrace AI “aggressively and immediately” in order to keep up with the competition.
