ChatGPT continues to hurt ‘homework helper’ Chegg

Students looking for homework help are increasingly turning to ChatGPT, shunning subscriptions to “homework solutions” company Chegg. sticker on textbook spine
(Sarah Kerver / Getty Images for

Chegg’s share price has failed to recover since CEO Dan Rosensweig told investors that the edtech company was losing business to ChatGPT on May 1.  

In a quarterly investor call, Rosensweig said students’ increased interest in ChatGPT was having a negative impact on Chegg’s customer growth rate, prompting Chegg’s share price to plummet. 

On Tuesday, the company’s share price approached $9, continuing a descent from $25 at the start of the year. Share prices peaked at $113 in February 2021.

Chegg recently launched a Chat-GPT-powered tutor called Cheggmate, but this offering may struggle to gain traction as it is “easily substituted” by ChatGPT alone, Benjamin Zoega, a Deutsche Bank analyst, told the Financial Times on Monday.


Access to Chegg’s suite of “homework solutions” starts at $15.95 a month.

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