Chegg was once worth $14.5 billion. AI changed everything.


For years, Chegg was every student's go-to place for homework help.
It built a library of 79 million expert-verified answers.
Then ChatGPT arrived.
It was free, instant, and for millions of students, there was no reason to pay for Chegg anymore.
Just five months after ChatGPT launched, Chegg's CEO admitted AI was hurting the business.
The company's biggest competitor wasn't another company.
It was ChatGPT.
The impact was immediate.
Chegg stock crashed 48% in a single day.
By Q4 2025, revenue had fallen 49%.
The company started shrinking.
In May 2025, Chegg laid off 22% of its workforce.
Months later, another 45% were cut, and the company shut down its U.S. and Canada offices.
In just 39 months, Chegg's valuation collapsed from $14.5 billion to $114 million.
That's a 99% decline.
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