Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Chegg is suing Google parent Alphabet over claims the search engine\u2019s artificial intelligence summary tool has hit its revenues, leading the US-listed educational technology group to weigh up a sale of the business.California-based Chegg, which provides study tools for students, filed the complaint on Monday claiming that Google\u2019s AI Overviews, which presents users with\u00a0summary\u00a0answers to their queries, serves to keep users on Google\u2019s own site.Chief executive Nathan Schultz said the search giant\u2019s AI search changes had \u201cunjustly retained traffic that has historically come to Chegg, impacting our acquisitions, revenue and employees\u201d. He added this was \u201cmaterially impacting\u201d revenues, leading to the company to instigate a strategic revenue in which it would explore\u00a0\u201ca range of alternatives to maximise shareholder value, including being acquired, undertaking a go-private transaction, or remaining as a public standalone company\u201d.Google said: \u201cWith AI Overviews, people find search more helpful and use it more, creating new opportunities for content to be discovered. Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites. We will defend against these meritless claims.\u201dChegg\u2019s move comes as developments in AI shake global industries, from healthcare to education and the automotive sector. The fast development of generative AI since OpenAI launched ChatGPT in November 2022 has upended demand for edtech companies\u2019 paid-for online learning tools, leading their valuations to plummet.The company\u2019s shares were down 22 per cent in pre-market trading on Tuesday. Chegg\u2019s stock is down more than 80 per cent over the past year.Edtech businesses are grappling with how to harness the benefits of generative AI, often integrating some of the tools into their own products, while also being wary of AI companies establishing rival platforms, such as OpenAI\u2019s recently launched ChatGPT Edu and Google\u2019s LearnLM.\u00a0In November, Chegg announced it was cutting another fifth of its workforce, having implemented a round of redundancies just\u00a0six month earlier.\u00a0The company\u2019s experience marks a wider trend of falling investment in online education companies, which last year fell to its lowest level in a decade in part because of the rapid rise of free generative AI tools. Edtech businesses received just $3bn of investment in 2024, compared with $17.3bn at the peak of the pandemic in 2021, according to data from PitchBook.\u00a0Chegg reported on Monday that total net revenues for the three-month period to the end of December dropped nearly a quarter to $143.5mn compared with the previous year, while the number of service subscribers fell 21 per cent to 3.6mn. Total net revenues for the full year were down 14 per cent at $617.6mn, the company said, while the number of service subscribers also fell 14 per cent to 6.6mn.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Chegg is suing Google parent Alphabet over claims the search engine\u2019s artificial intelligence summary tool has hit its revenues, leading the US-listed educational technology group to<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-220652","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/220652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=220652"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/220652\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=220652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=220652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=220652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}