Shares of the education technology company Chegg lost nearly half their value Tuesday after its CEO warned that OpenAI’s free ChatGPT service was cutting into its growth.
Chegg CEO Dan Rosensweig told investors on a conference call Monday that early in the year, the company was meeting expectations for new sign-ups for its educational services. But that shifted in recent months.
“Since March we saw a significant spike in student interest in ChatGPT,” Rosensweig said. “We now believe it’s having an impact on our new customer growth rate.”
