What happened:Education technology firm Chegg Inc. saw its shares tumble 48% on Tuesday after its CEO cautioned that ChatGPT was cutting into growth.
Details:The Santa Clara, California-based firm offers subscription-based services to help students with their coursework. During an investor call Monday, CEO Dan Rosensweig said ChatGPT is impacting Chegg's customer-growth rates after seeing a spike in students' ChatGPT interest since March. While not a "substantial" impact, Rosenberg said users who would typically pay for Chegg near midterms or finals are outsourcing to freely available ChatGPT.
Other impacts:Tuesday's selloff also impacted shares of Duolingo and Pearson. Chegg has also pulled its annual revenue forecast from February, citing uncertainty around ChatGPT's impact on online-learning platforms.
Still:Chegg plans to incorporate AI into its own services. Last month it launched CheggMate , a GPT 4-powered AI study guide for students.
