Chegg Embraced AI. ChatGPT Ate Its Lunch Anyway

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Chegg Embraced AI. ChatGPT Ate Its Lunch Anyway
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The education company is a case study in generative AI’s disruptive power. Now it’s trying to prove it can beat back ChatGPT with an in-house chatbot.

was added to ChatGPT, and the centrality of generative AI to Chegg’s future became inarguable, carved as it was into the company's dented user growth.Chegg is now focused on proving with its in-house bot CheggMate that it’s possible to outcompete ChatGPT when it charges onto your turf.

The new service also doesn’t exactly ease ethical implications. Chegg has long faced allegations from colleges and universities that it enables cheating, as students secretly turn to its tools to complete homework and exams. Officially, Cheggand carries out and supports integrity investigations, says Nina Huntemann, the company’s chief academic officer. But former Chegg data scientist Eric Wang worries that CheggMate and similar applications could spread the cheating habit.

Chegg executives hope tuning their chatbot to education that way will make ChatGPT look less attractive as a homework helper. Pricing for CheggMate has not been determined; operating generative models is expensive, and those costs rise with usage. But two former employees say that having a human expert answer a question costs about $2.

The recent ride has made Rosensweig, who has led Chegg since 2010, and his friend of 20 years, OpenAI’s Altman, into competitors and perhaps frenemies. They both have a hand now in shaping the next chapter of education.

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