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Chegg Is on Its Last Legs After ChatGPT Sent Its Stock Down 99%


After seeing its stock fall 99%, there are doubts the online education company will be able to pay its debts.

“It’s free, it’s instant, and you don’t really have to worry if the problem is there or not,” Jonah Tang, an M.B.A. candidate at Point Loma Nazarene University in San Diego, said of the advantages of using ChatGPT for homework help over Chegg. What’s perhaps most sad is that, according to the WSJ, employees actually asked for resources in 2022 to develop AI tools for automating answers in order to address the huge influx in new demand. Chegg’s leaders denied the request to start building AI tools until ChatGPT’s release, but even then some internally weren’t worried because of the chatbot’s propensity to make up incorrect answers.

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