How ChatGPT Brought Down an Online Education Giant

Most companies are starting to figure out how AI will change the way they do business. Chegg is trying to avoid becoming its first major victim. WSJ: The online education company was for many years the go-to source for students who wanted help with their homework, or a potential tool for plagiarism. The shift to virtual learning during the pandemic sent subscriptions and its stock price to record highs.

Then came ChatGPT. Suddenly students had a free alternative to the answers Chegg spent years developing with thousands of contractors in India. Instead of 'Chegging' the solution, they began canceling their subscriptions and plugging questions into chatbots. Since ChatGPT's launch, Chegg has lost more than half a million subscribers who pay up to $19.95 a month for prewritten answers to textbook questions and on-demand help from experts. Its stock is down 99% from early 2021, erasing some $14.5 billion of market value. Bond traders have doubts the company will continue bringing in enough cash to pay its debts.

Read more of this story at Slashdot.