Chegg sues Google, explores sale after AI search summaries hit revenues
Briefly

Chegg has filed a lawsuit against Alphabet Inc., arguing that Google's AI Overviews have significantly diminished its traffic and revenue by keeping users on Google's site. The company, which specializes in educational technology, believes this has led to a pressing need to explore various strategies to maximize shareholder value, including potential acquisition. Google countered that their AI tool provides enhanced search results, promoting greater site diversity. The lawsuit reflects broader tensions within industries adapting to rapid advancements in AI, particularly affecting companies like Chegg in the edtech sector.
Chegg is suing Google for allegedly reducing its traffic and revenue due to the search engine's AI summary tool, considering options like being acquired.
Chegg's CEO stated that Google's AI changes have "unjustly retained traffic that has historically come to Chegg," severely impacting its business.
Google argues that its AI Overviews enhance search utility and promote site diversity, claiming they will defend against what they call "meritless claims."
Read at Ars Technica
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