When Los Angeles Unified School District launched a districtwide AI chatbot nicknamed “Ed” in March, officials boasted that it represented a revolutionary new tool that was only possible thanks to generative AI — a personal assistant that could point each student to tailored resources and assignments and playfully nudge and encourage them to keep going.
But last month, just a few months after the fanfare of the public launch event, the district abruptly shut down its Ed chatbot, after the company it contracted to build the system, AllHere Education, suddenly furloughed most of its staff citing financial difficulties. The company had raised more than $12 million in venture capital, and its five-year contract with the LA district was for about $6 million over five years, about half of which the company had already been paid.
It’s not yet clear what happened: LAUSD officials declined interview requests from EdSurge, and officials from AllHere did not respond to requests for comment about the company’s future. A statement issued by the school district said “several educational technology companies are interested in acquiring” AllHere to continue its work, though nothing concrete has been announced.
