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Chamarti Sreekar
Passionate about Pos... • 1m
Chegg just sued Google. The reason? AI-generated summaries in search results are eating into its website traffic—and revenue. But here’s where it gets more interesting... Chegg has relied on Google’s search engine for years to drive traffic and revenue. Now, Google’s AI summarizes answers directly in search, meaning fewer people are clicking through to Chegg’s site. And the impact? Brutal. 📉 Chegg's stock is now worth just over $1 per share. 📉 Revenue fell 24% year over year. 📉 Subscriptions dropped 21% in Q4. In response, Chegg is considering big moves—from acquisitions to going private. 🔹 But here’s the twist: Chegg isn’t against AI. They’ve partnered with OpenAI, used Meta’s Llama, and integrated models from Anthropic & Mistral into their platform. So, why the lawsuit? Chegg argues that Google is using its content to train AI models—then serving competing answers without attribution. Google, on the other hand, insists its AI Overviews improve search for over 1 billion users in 100+ countries. 🚀 The bigger picture? AI is redefining search. Companies built on SEO-driven traffic are now facing an existential threat. Will Chegg’s lawsuit change anything? Or is this just the beginning of AI disrupting search-based businesses?
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