Chegg

Chegg is an education technology company founded in 2005, originally as a textbook rental service that evolved into a digital learning platform with homework help, tutoring, and writing assistance for college students. The company went public in 2013 and at its peak served millions of paying subscribers.

Chegg has become the most prominent example of a company disrupted by generative AI. In May 2023, CEO Dan Rosensweig explicitly attributed declining subscriber growth to ChatGPT — one of the first public admissions by a major CEO that AI was directly cannibalizing their business. Chegg's stock subsequently collapsed roughly 99% from its all-time high, erasing billions in market value and becoming a cautionary case study in AI disruption. Chegg also took Google to court, arguing that the AI Overviews in its search results reproduced Chegg's content and drained its traffic. On October 1, 2026, US District Judge Amit Mehta dismissed that antitrust suit, along with a similar one from Penske Media, ruling that an expectation of search traffic is not an agreement Google was bound to honor, while saying he was not unsympathetic to publishers whose work is repurposed without compensation.

Chegg is attempting to pivot with CheggMate, an AI-powered learning assistant built in partnership with OpenAI, and has invested in AI-enhanced tutoring and writing tools. However, the company faces an existential challenge: free AI chatbots can provide the same homework help and explanations that students previously paid Chegg for, and the company has undergone multiple rounds of significant layoffs as it struggles to find a sustainable business model in the post-ChatGPT education landscape.