The first major AI casualty is here โ and itโs a warning signal for every knowledge-based business.
Chegg, once a $14.7B EdTech giant, has been economically destroyed by AI.
Its entire model was built on monetizing access to answers: homework solutions, study guides, textbook rentals.
Then AI arrived.
ChatGPT, Claude, and Gemini gave users something radically better:
โข Instant answers
โข Step-by-step explanations
โข Personalized learning
โข Zero cost
The result?
๐ Stock down ~99% from peak
๐ Market cap collapsed to ~$110M
๐ 2025 revenue: $377M (-39% YoY)
๐ Q4 revenue: $73M (-49% YoY)
๐ Over 56% of employees laid off
Core business? Shutting down.
Chegg is now pivoting to โChegg Skillsโ โ a corporate training platform targeting B2B clients.
Early growth exists. But the original business is gone.
This is a textbook example of AI-driven market destruction.
If your business depends on selling:
โข Information
โข Knowledge
โข Answers
AI is your direct competitor.
And it doesnโt need funding, teams, or scaling.
It scales infinitely.
The implication for crypto & trading is even deeper:
AI will:
โข Replace signal sellers
โข Compress alpha
โข Automate analysis
โข Democratize edge
The only defensible moat?
๐ Proprietary data
๐ Execution speed
๐ Unique insights
Everything else is at risk.
#Aฤฐ #crypto #trading #EDTECH #INNOVATION