AI wind, blowing down the online education giant ChegG.
During the epidemic period, the rise of online education made Cheggs limelight, becoming the first choice platform for students to seek homework, the companys stock price and subscription volume reached a record high, each place, eachUsers need to pay up to $ 19.95 a month in order to get the answers to textbook questions and the instant help of experts.
However, with the rise of artificial intelligence chat robots, the students suddenly had a free alternative, resulting in a sharp decline in the number of subscribers in ChegG.Since the release of ChatGPT, CHEGG has lost more than 500,000 paid subscribers, and the stock price has fallen 99%from the high point in early 2021, and its market value has evaporated about $ 14.5 billion.Bond traders suspect that the company can continue to generate enough cash flow to repay the debt.
Jonah Tang, a MBA student at the University of Point Loma Nazarene University in San Diego:
"Use ChatGPT to help work with chegg to use Chegg to use Cheggg with Chegg.Okay, because ChatGPT is free, the answer is fast, and you do n’t have to worry about the question.> Chegg companys stock price trend, platform screenshots
AI subversion online education market
Chegg was a simpleStudent exchange platform, later developed into textbook rental companies in the 2000s, and provided artificial online learning guidelines in the 2010s.Although ChegG has developed its own AI products, the company is still trying to persuade consumers and investors, which is still valuable in the market environment that has been subversed by ChatGPT.
Former Yahoo executive Rosensweig became a company CEO in 2010, managing ChegG like a rapidly growing technology company.The program "Teach young people to repay student loans. But when the companys business encountered difficulties in 2022, employees wanted to develop an AI tool for automatic answers, but WSJ quoted a person involved in the project.This request
After the release of "35o7jtnn"> ChatGPT, some Chegg employees feel that ChatGPT will not threaten them because ChatGPT sometimes gives wrong answers.Data show that more and more students have begun to use ChatGPT as learning auxiliary tools.At that time, Rosensweig, CEO of Chegg, met with OPENAI CEO Sam Altman. The two decided to cooperate with a new service called Cheggmate.Millions of answers and GPT-4 technology to quickly answer students questions, and can also generate test questions.Said that ChatGPT grabbed their users, ChegG withdrew the financial forecast for the remaining time this year, which caused its stock price to plummet by 48%.
It is announced that Chegg will no longer use the name Chegmate.The page is very similar to ChatGPT. As soon as you open the website, you will see a text box. Openais application will ask: "What can I help you?"And Cheggs homepage now asked:" What help do you need today?"Chegg said, answering questions with AI is about one quarter lower than the cost of asking people to answer questions. However, despite these new tools, ChegG users are still in the same toolThe CHEGG reported that the revenue in the second quarter was 11%, which was the largest annual decline since 2017.Ryan Macdonald, an investor of the investment bank, believes that he is worried that the difficulty of Chegg is not temporary, but a deeper and structural issue.Satisfied, but the survey data from the investment banks Needham show that the proportion of students planned to use ChegG this semester will decrease from 38%in spring to 30%, while the proportion of students planned to use ChatGPT has increased from 43%to 62%.
Rosensweig has served as CEO of CHEGG for more than ten years. He resigned in June because the companys stock price plummeted under his leadership..
Cheggs new CEO Nathan Schultz took office, in order to deal with the companys challenges, nearly a quarter of employees were cut and promoted the companys expansion to the international market.Chegg hopes to provide students with a service that is not only a job answer, but also a more comprehensive answer and consulting service to attract more serious learners.. They want to attract students who need more help, not just those who want to find free answers.
