[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"nav-categories":3,"article-chegg-the-first-company-killed-by-ai":70},{"data":4},[5,37,57,64],{"name":6,"slug":7,"categories":8},"Productivity","productivity",[9,13,17,21,25,29,33],{"id":10,"title":11,"slug":12},17,"Branding","branding",{"id":14,"title":15,"slug":16},19,"Marketing","marketing",{"id":18,"title":19,"slug":20},20,"Work","work",{"id":22,"title":23,"slug":24},34,"Community","community",{"id":26,"title":27,"slug":28},21,"For newbies","for-newbies",{"id":30,"title":31,"slug":32},24,"Investment","investment",{"id":34,"title":35,"slug":36},22,"Finance","finance",{"name":38,"slug":39,"categories":40},"Tech","tech",[41,45,49,53],{"id":42,"title":43,"slug":44},28,"Technology","technology",{"id":46,"title":47,"slug":48},32,"Artificial Intelligence","artificial-intelligence",{"id":50,"title":51,"slug":52},26,"Security and protection","security-and-protection",{"id":54,"title":55,"slug":56},31,"YouTube Blog","youtube-blog",{"name":58,"slug":59,"categories":60},"News","news",[61],{"id":62,"title":58,"slug":63},18,"quasanews",{"name":65,"slug":66,"categories":67},"Business","business",[68],{"id":69,"title":65,"slug":66},16,{"post":71,"published_news":96,"popular_news":162,"categories":233},{"title":72,"description":73,"meta_title":72,"meta_description":74,"meta_keywords":75,"text":76,"slug":77,"created_at":78,"publish_at":79,"formatted_created_at":80,"category_id":46,"links":81,"view_type":86,"video_url":87,"views":88,"likes":89,"lang":90,"comments_count":89,"category":91},"Chegg: The First Company Killed by AI?","The company, which had evolved from a textbook-rental startup into the go-to platform for stressed-out college students, boasted a market capitalization of roughly $14.7 billion. Its shares were trading near an all-time high of around $113.","Even former top Chegg experts have publicly said the volume of questions dried up within months of ChatGPT’s release","By 2026, Chegg was reportedly shutting down or de-emphasizing its flagship Q&A business entirely.","\u003Cp>In early 2021, Chegg Inc. looked like one of the unstoppable darlings of the pandemic-era education boom. The company, which had evolved from a textbook-rental startup into the go-to platform for stressed-out college students, \u003Ca href=\"https://europeanbusinessmagazine.com/chegg-stock-collapse-chatgpt-ai-disruption-2026/\">boasted a market capitalization of roughly $14.7 billion\u003C/a>. Its shares were trading near an all-time high of around \u003Ca href=\"https://www.macrotrends.net/stocks/charts/CHGG/chegg/stock-price-history\">$113\u003C/a>. Wall Street loved the story: a subscription-based service that promised to make homework, exams, and studying almost effortless.\u003C/p>\n\n\u003Cp>\u003Cpicture>\u003Csource srcset=\"https://cdn.quasa.io/photos/0001/photo_2026-05-02_11-35-08.webp\" type=\"image/webp\">\u003Cimg  alt=\"Chegg: The First Company Killed by AI?\" class=\"image-align-center\" height=\"238\" src=\"https://cdn.quasa.io/photos/0001/photo_2026-05-02_11-35-08.jpg\" width=\"300\" />\u003C/picture>\u003C/p>\n\n\u003Cp>Fast-forward just four years. As of May 2026, Chegg&rsquo;s market cap has collapsed to about $125 million. Shares are hovering around $1.10 &mdash; sometimes dipping below a dollar &mdash; representing a staggering 99% wipeout from its peak. The company has undergone multiple rounds of brutal layoffs, including a 45% workforce cut (388 jobs) in late 2025, office closures, and a desperate pivot toward B2B &ldquo;skilling&rdquo; services. Analysts and former employees openly describe the core business as effectively dead.\u003C/p>\n\n\u003Cp>So what happened? The answer is brutally simple: \u003Cstrong>ChatGPT\u003C/strong>.\u003C/p>\n\n\u003Chr />\n\u003Ch4>\u003Cstrong>The Chegg Business Model That Once Printed Money\u003C/strong>\u003C/h4>\n\n\u003Cp>\u003Cpicture>\u003Csource srcset=\"https://cdn.quasa.io/photos/0001/image-2026-05-02t114208480.webp\" type=\"image/webp\">\u003Cimg alt=\"Chegg: The First Company Killed by AI?\" class=\"image-align-right\" height=\"447\" src=\"https://cdn.quasa.io/photos/0001/image-2026-05-02t114208480.jpg\" width=\"300\" />\u003C/picture>For roughly $20 a month, Chegg offered students something irresistible: on-demand academic cheating, dressed up as &ldquo;study support.&rdquo;\u003C/p>\n\n\u003Cp>\u003Cstrong>Subscribers could:\u003C/strong>\u003C/p>\n\n\u003Cul>\n\t\u003Cli>Browse a massive library of pre-solved textbook problems.\u003C/li>\n\t\u003Cli>Upload photos of homework, quizzes, or even live exam questions.\u003C/li>\n\t\u003Cli>Get real-time answers from human experts working 24/7.\u003C/li>\n\u003C/ul>\n\n\u003Cp>During final exams, students literally photographed problems on their phones and received step-by-step solutions within minutes. It wasn&rsquo;t subtle, but it worked &mdash; especially during the remote-learning frenzy of COVID. At its height, Chegg had millions of subscribers and was seen as a must-have tool for surviving college.\u003C/p>\n\n\u003Cp>The model relied on two things: (1) students&rsquo; willingness to pay for convenience and (2) the delay inherent in human experts. You had to snap the photo, upload it, and wait a bit. It wasn&rsquo;t instant, but it was reliable enough to justify the subscription.\u003C/p>\n\n\u003Chr />\n\u003Ch4>\u003Cstrong>Enter ChatGPT &mdash; And the Instant, Free Alternative\u003C/strong>\u003C/h4>\n\n\u003Cp>\u003Cpicture>\u003Csource srcset=\"https://cdn.quasa.io/photos/0001/image-2026-05-02t114211531.webp\" type=\"image/webp\">\u003Cimg alt=\"Chegg: The First Company Killed by AI?\" class=\"image-align-left\" height=\"447\" src=\"https://cdn.quasa.io/photos/0001/image-2026-05-02t114211531.jpg\" width=\"300\" />\u003C/picture>When OpenAI launched ChatGPT in November 2022, the entire value proposition evaporated almost overnight.\u003C/p>\n\n\u003Cp>Why upload a photo and wait for a human expert when a free chatbot could solve the same calculus problem, write the same essay outline, or explain the same organic chemistry mechanism in seconds &mdash; with zero subscription fee?\u003C/p>\n\n\u003Cp>By May 2023, Chegg&rsquo;s then-CEO was forced to admit on an earnings call that ChatGPT was actively cannibalizing new subscriber growth.\u003C/p>\n\n\u003Cp>The stock dropped nearly 50% in a single day, erasing over $1 billion in market value. It never recovered. Google&rsquo;s AI Overviews later piled on, summarizing answers directly in search results and further starving Chegg of traffic.\u003C/p>\n\n\u003Cp>Revenue plunged (down 49% year-over-year in recent quarters), subscribers evaporated, and the company&rsquo;s once-vaunted expert network became obsolete.\u003C/p>\n\n\u003Cp>Even former top Chegg experts have publicly said the volume of questions dried up within months of ChatGPT&rsquo;s release. By 2026, Chegg was reportedly shutting down or de-emphasizing its flagship Q&amp;A business entirely.\u003C/p>\n\n\u003Chr />\n\u003Ch4>\u003Cstrong>A New Speed of Corporate Death\u003C/strong>\u003C/h4>\n\n\u003Cp>\u003Cpicture>\u003Csource srcset=\"https://cdn.quasa.io/photos/0001/image-2026-05-02t114213848.webp\" type=\"image/webp\">\u003Cimg alt=\"Chegg: The First Company Killed by AI?\" class=\"image-align-right\" height=\"447\" src=\"https://cdn.quasa.io/photos/0001/image-2026-05-02t114213848.jpg\" width=\"300\" />\u003C/picture>What makes Chegg&rsquo;s story remarkable isn&rsquo;t just that AI disrupted it &mdash; it&rsquo;s how *fast* it happened.\u003C/p>\n\n\u003Cp>Traditional corporate deaths (Kodak, Blockbuster, Nokia) took 5&ndash;10 years. Chegg lost 99% of its value in roughly 39 months. The company wasn&rsquo;t even &ldquo;young&rdquo; in startup terms &mdash; it was founded in 2005 as a textbook-rental service and had been public since 2013. But its core homework-help moat, built over a decade, was obliterated in under four years by a single technology.\u003C/p>\n\n\u003Cp>This is no longer the slow grind of creative destruction. This is AI-driven creative annihilation &mdash; and it&rsquo;s happening at warp speed.\u003C/p>\n\n\u003Cp>Chegg tried to pivot. It explored a sale, brought back former CEO Dan Rosensweig, and is now trying to reposition itself in the much larger corporate training market. Whether that works remains to be seen. But the original Chegg &mdash; the one that let students cheat their way through finals in real time &mdash; is gone.\u003C/p>\n\n\u003Cp>Also read:\u003C/p>\n\n\u003Cul>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/y-combinator-just-flipped-its-ai-thesis-from-faster-work-to-ai-as-the-company-os\">Y Combinator Just Flipped Its AI Thesis &mdash; From &ldquo;Faster Work&rdquo; to &ldquo;AI as the Company OS&rdquo;\u003C/a>\u003C/li>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/what-will-be-scarce-in-the-age-of-ai\">What Will Be Scarce in the Age of AI\u003C/a>\u003C/li>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/ai-hallucinations-aren-t-the-model-s-fault-they-re-yours\">AI Hallucinations Aren&rsquo;t the Model&rsquo;s Fault &mdash; They&rsquo;re Yours\u003C/a>\u003C/li>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/open-source-ai-music-is-heating-up-ace-step-and-its-expanding-ecosystem\">Open-Source AI Music Is Heating Up: ACE-Step and Its Expanding Ecosystem\u003C/a>\u003C/li>\n\u003C/ul>\n\n\u003Chr />\n\u003Ch4>\u003Cstrong>The Bigger Lesson\u003C/strong>\u003C/h4>\n\n\u003Cp>Chegg wasn&rsquo;t a bad company. It solved a real pain point for millions of students. Its only sin was building a business model that was \u003Cstrong>perfectly\u003C/strong>&nbsp;vulnerable to large language models: a service whose entire value was &ldquo;pay us to get answers faster than you can get them yourself.&rdquo;\u003C/p>\n\n\u003Cp>In the age of AI, that bar is now set at &ldquo;instant and free.&rdquo;\u003C/p>\n\n\u003Cp>If your company&rsquo;s product can be replicated by a chatbot in seconds, you&rsquo;re not in the education business anymore &mdash; you&rsquo;re in the obsolescence business.\u003C/p>\n\n\u003Cp>Chegg just happened to be first. It almost certainly won&rsquo;t be the last.\u003C/p>","chegg-the-first-company-killed-by-ai","2026-05-02T09:44:05.000000Z","2026-05-05T06:37:00.000000Z","05.05.2026",{"image":82,"image_webp":83,"thumb":84,"thumb_webp":85},"https://cdn.quasa.io/images/news/hRwiGv1slX4qWONDZqgCa7aZM71oxUYB7uQ5VqxN.jpg","https://cdn.quasa.io/images/news/hRwiGv1slX4qWONDZqgCa7aZM71oxUYB7uQ5VqxN.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/hRwiGv1slX4qWONDZqgCa7aZM71oxUYB7uQ5VqxN.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/hRwiGv1slX4qWONDZqgCa7aZM71oxUYB7uQ5VqxN.webp","small",null,241,0,"en",{"id":46,"title":47,"slug":48,"meta_title":92,"meta_description":93,"meta_keywords":93,"deleted_at":87,"created_at":94,"updated_at":95,"lang":90},"Artificial Intelligence | AI Breakthroughs, Agents & Tools | QUASA","Artificial Intelligence, ai, ml, machine learning, chatgpt, future","2024-09-22T08:08:27.000000Z","2026-04-22T14:56:34.000000Z",[97,111,124,138,150],{"title":98,"description":99,"slug":100,"created_at":101,"publish_at":102,"formatted_created_at":103,"category":104,"links":105,"view_type":86,"video_url":87,"views":14,"likes":89,"lang":90,"comments_count":89,"is_pinned":110},"Slopaganda: How Iran Weaponized Memes, AI Videos, and Lego-Style Animation to Fight Back in the Information War","When the bombs started falling on Iran, the script seemed obvious. An isolated, theocratic regime with heavy internet censorship, run by aging clerics — surely they would respond with stiff religious sermons, state TV rants, and maybe some clumsy Arabic/ Persian hashtags. 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We offer to place your article, add a link or order the writing of an article for publication.","advertising-on-quasa","2022-07-06T07:33:02.000000Z","2025-12-15T17:33:02.000000Z","15.12.2025",{"title":58,"slug":63},{"image":185,"image_webp":186,"thumb":187,"thumb_webp":188},"https://cdn.quasa.io/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.jpg","https://cdn.quasa.io/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.webp","large",72926,4,{"title":193,"description":194,"slug":195,"created_at":196,"publish_at":197,"formatted_created_at":198,"category":199,"links":200,"view_type":86,"video_url":87,"views":203,"likes":191,"lang":90,"comments_count":89,"is_pinned":110},"What is a Startup?","A startup is not a new company, not a tech company, nor a new tech company. You can be a new tech company, if your goal is not to grow high and fast; then, you are not a startup. ","what-is-a-startup","2021-08-04T12:05:17.000000Z","2025-12-17T13:02:00.000000Z","17.12.2025",{"title":65,"slug":66},{"image":201,"image_webp":87,"thumb":202,"thumb_webp":202},"https://cdn.quasa.io/images/news/EOsQhSW3VXyG7a6NPdE1oZd00xfJXe3bjY5aJGb7.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/EOsQhSW3VXyG7a6NPdE1oZd00xfJXe3bjY5aJGb7.webp",70469,{"title":205,"description":206,"slug":207,"created_at":208,"publish_at":209,"formatted_created_at":210,"category":211,"links":212,"view_type":86,"video_url":87,"views":217,"likes":175,"lang":90,"comments_count":218,"is_pinned":110},"Top 5 Tips to Make More Money as a Content Creator","Content creators are one of the most desired job titles right now. Who wouldn’t want to earn a living online?","top-5-tips-to-make-more-money-as-a-content-creator","2022-01-17T17:31:51.000000Z","2026-01-17T11:30:00.000000Z","17.01.2026",{"title":19,"slug":20},{"image":213,"image_webp":214,"thumb":215,"thumb_webp":216},"https://cdn.quasa.io/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.jpg","https://cdn.quasa.io/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.webp",44294,1,{"title":220,"description":221,"slug":222,"created_at":223,"publish_at":224,"formatted_created_at":225,"category":226,"links":227,"view_type":189,"video_url":87,"views":232,"likes":175,"lang":90,"comments_count":89,"is_pinned":110},"8 Logo Design Tips for Small Businesses","Your logo tells the story of your business and the values you stand for.","8-logo-design-tips-for-small-businesses","2021-12-04T21:59:52.000000Z","2025-05-05T03:30:00.000000Z","05.05.2025",{"title":15,"slug":16},{"image":228,"image_webp":229,"thumb":230,"thumb_webp":231},"https://cdn.quasa.io/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.jpg","https://cdn.quasa.io/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.webp",43263,[234,235,236,237,238,239,240,241,242,243,244,245,246],{"title":23,"slug":24},{"title":47,"slug":48},{"title":55,"slug":56},{"title":43,"slug":44},{"title":51,"slug":52},{"title":31,"slug":32},{"title":35,"slug":36},{"title":27,"slug":28},{"title":19,"slug":20},{"title":15,"slug":16},{"title":58,"slug":63},{"title":11,"slug":12},{"title":65,"slug":66}]