Sarah Kerver/Getty Images Entertainment
It’s not just Hollywood shaking in fear of AI. Online education companies traded lower after Elon Musk announced his AI startup this week.
Chegg (NYSE:CHGG) fell 3%, 2U (TWOU) dropped 2.3%, Coursera (NYSE:COUR) decreased 2%, SkillSoft (SKIL) fell 5.5% and Sunlands Technology Group (STG) was down 1% on Friday afternoon.
Over the past 12 months, CHGG dropped by 50%, TWOU by 63%, COUR by 13%, SKIL by 64% and by STG 31%.
Last month, Chegg (CHGG) said it was reducing headcount by 4% as part of the education company’s plan to “execute against its AI strategy.”
In May, CHGG warned that ChatGPT had a negative impact on new customer growth beginning in March. The fear is that ChatGPT may replace some of Chegg’s (CHGG) services relied on by students.
Musk unveiled xAI on Wednesday as he attempts to challenge ChatGPT. The billionaire has said on several occasions that the development of AI should be paused and that the sector needed regulation, Reuters reported.
