Chegg has filed a lawsuit against Google, claiming that the introduction of AI Overviews has significantly harmed its business by drawing traffic away from its educational services. This lawsuit highlights Chegg's dire situation, with CEO Nathan Schultz expressing that the company may need to consider selling or going private due to lost revenue and layoffs. The ongoing situation demonstrates the challenges smaller tech companies face against established giants like Google, especially in the rapidly evolving tech landscape.
"We would not need to review strategic alternatives if Google hadn't launched AI Overviews, or AIO, retaining traffic that historically had come to Chegg, materially impacting our acquisitions, revenue, and employees."
"Chegg frames the damage as existential; CEO Nathan Schultz said Monday in a call with investors that because of Google's new product, the smaller company may have to sell itself off or go private."
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