Chegg saw on the New York Stock Exchange on February 13, 2025.
Danielle Devries | CNBC
Chegg On Monday he filed a lawsuit at the Federal District Court against Googleclaiming that the abstracts of artificial intelligences have harmed traffic and revenue of network educational companies.
The legal move comes for almost two years after former Dan Rosensweig Director said that the students who deal with Chatgpt are Assistant Openai as he cuts to Chegg’s New customer growth.
Chegg is worth less than $ 200 million, and in the aftermath, the shares were traded just over $ 1 per share. Chegg hired Goldman Sachs and will consider strategic options, including the procurement of private, president and executive director Nathan Schultz, he said to analysts on Monday.
Chegg reported a net loss of $ 6.1 million at $ 143.5 million in revenue in the fourth quarter, which is 24% of the decline in the year, according to a statement. The analysts surveyed by LSEG expected $ 142.1 million in revenue. The administration called for revenue in the first quarter between $ 114 million and $ 116 million, but analysts were targeting $ 138.1 million. The shares reduced 18% in extended trading.
Google is forced by companies like Chegg to “supply our ownership content to be involved in Google’s search function,” said Schultz, adding that the search company uses its monopoly power, “which is exploiting the financial advantage of Chegg without the need for the need for by spending the level. “
Despite the suit, Chegg has its own AI strategy. He drew Target Open Code, as well as models from private anthropic and mistrate, Schultz said. Chegg also joined OPENAI, which the educational company considers a competitor, along with Google. The company reported that 3.6 million students had subscriptions in the fourth quarter, which is 21%lower. Subscriptions include access to learning assistance on AI.
AI examinations, as Google’s Summary of Artificial Intelligence are called, are available on a company search engine in over 100 countries, with more than billion users, the company said in the company October. Appear above the links to other pages in search results.
With a collection of 135 million questions and answers to various topics, Chegg “depends on the recommendations of Google’s search engine monopoly for a large part of the income that dedicates to the production of original internet content,” the application company said.
Chegg cited a federal judge ruling last August Google It has a monopoly on the search market. The decision followed after the 2020 Justice Ministry submitted its Random casestating that Google controlled the general search market by creating strong obstacles to the entry and return loop that held its dominance.
Google did not immediately respond to a comment request.
