Shulou(Shulou.com)11/24 Report--

Thank CTOnews.com netizens for smiling oO's clue delivery! CTOnews.com, May 3 (Xinhua)-- Chegg, an American online education company, admitted on Monday night that students' interest in ChatGPT, an artificial intelligence chat robot, "soared" and began to hurt its sales.

"We now think it has had an impact on the growth rate of our new customers," CEO Dan Rosensweig said on an earnings call with analysts. Chegg shares nearly halved on Tuesday, plunging more than 40 per cent. The warning also affected other companies, with London-listed Pearson down 15 per cent, language learning platform Duolingo down 10 per cent and education company Udemy down about 5 per cent. Chegg's recognition marks the first time a company has admitted that its financial situation has been hit by advances in generative artificial intelligence.

ChatGPT is an artificial intelligence software based on natural language processing developed by OpenAI, which can have intelligent conversations with users, answer all kinds of questions, and even help users complete their homework. This is a fatal blow to Chegg because its main source of income is to provide homework solutions to students.

CTOnews.com noted that Dan Rosensweig also revealed in the earnings call that the company is working with OpenAI to develop its own artificial intelligence product, CheggMate, designed to help students better learn and understand homework.

However, the market is not optimistic about the future of CheggMate. Morgan Stanley analyst Josh Baer lowered Chegg's share price target to $12 from $18 and said the threat of artificial intelligence "completely obscured" Chegg's earnings performance. Jefferies analyst Brent Thill downgraded Chegg from buy to hold and cut its target share price to $11 from $25. He said that the timing of CheggMate's launch is uncertain, and even if it is launched, it will not have any impact on the company's revenue before 2023.

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