Chegg's $14 Billion Decline: How AI Disruption Impacted Its Services

A $14 billion company, Chegg, is now being seen as one of the first major businesses disrupted by AI.

At its peak in 2021, Chegg was valued at around $14.7 billion, offering paid homework help to students. But tools like ChatGPT started giving instant answers for free, making its core service less useful.

The company tried to adapt by launching its own AI tool, but it couldn’t compete. As a result, it faced layoffs, falling users, and a massive drop in valuation—down to nearly $100 million.

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