Chegg sues Google for hurting traffic with AI as it considers strategic alternatives
Summary
Chegg on Monday filed suit in federal district court against Google , claiming that artificial intelligence summaries of search results have hurt the online education companys traffic and revenue. The legal move come nearly two years after former CEO Dan Rosensweig said students engaging with OpenAIs ChatGPT assistant were cutting into Cheggs new customer growth. Chegg has engaged Goldman Sachs and will look at strategic options, including getting acquired and going private, President and CEO Nathan Schultz told analysts on a Monday earnings call. With its collection of 135 million questions and answers on a variety of subjects, Chegg "depends on referrals from Googles monopoly search engine for a large portion of the revenue that it devotes to producing original online content," the company said in the filing. The decision came after the Department of Justice in 2020 filed its landmark case, alleging that Google controlled the general search market by creating strong barriers to entry and a feedback loop that sustained its dominance.
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