Chegg, the online education platform known for textbook rentals and homework help, has filed a lawsuit against Google, alleging anti-competitive practices related to AI-powered search results. Chegg claims Google is scraping its content to provide answers directly in search, thereby reducing traffic to Chegg’s website and undermining its business model. This isn’t a new tactic; Google has faced similar accusations from companies like Yelp, which argued that Google leveraged its search dominance to copy content and keep users on its platform. Chegg’s core argument revolves around the idea that by scraping websites and displaying snippets directly in search results, Google diminishes the incentive for companies like Chegg to invest in creating original content, the very material that fuels AI development.
Google’s Defense and Chegg’s Rollercoaster Ride
Google, along with other tech giants, has defended its use of external content in chatbots, claiming it falls under “fair use” due to the transformative nature of AI processing. They argue that AI-powered summaries don’t necessarily decrease traffic to original sources, instead helping users quickly find relevant information, which can then lead to deeper engagement. However, in cases like Chegg, where straightforward answers to homework problems are readily available, users might simply copy the answer from Google and move on, bypassing Chegg entirely. Chegg’s performance has been volatile since 2020. Initially experiencing a surge in demand during the pandemic, the company saw a sharp decline with the return to in-person learning and the rise of ChatGPT. Chegg’s stock, once at a peak of $113 in 2021, has plummeted to just $1 per share, losing hundreds of thousands of subscribers in 2024.
Chegg stock performance
The Dead Internet Theory and the Impact on Online Learning
By suing Google, Chegg highlights concerns surrounding the “dead internet theory”—the notion that the internet is becoming saturated with bot-generated and automated content. Ironically, Chegg itself has attempted to compete by incorporating AI into its own answer solutions, though users on platforms like Reddit have reported inaccuracies in these AI-generated responses. This highlights a potential consequence of Google’s practices: companies like Chegg are forced to adopt similar AI-driven strategies to stay competitive, potentially compromising the quality and reliability of their content. Websites like StackOverflow, a popular Q&A platform for programmers, have also experienced a decline due to the rise of chatbots. However, the value of platforms like StackOverflow lies in the process of working through problems, fostering deeper understanding through engagement with expert discussions. This contrasts with the instant gratification of chatbot responses, which may not provide the same level of learning and comprehension. Chegg aims to cater to “curious learners” by offering comprehensive, vetted answers, albeit with AI assistance.
The Future of Online Knowledge and the Role of AI
While Chegg may not be the most sympathetic plaintiff, their lawsuit raises important questions about the impact of AI-powered search summaries on the internet ecosystem. If websites like Chegg and StackOverflow struggle to survive, the detailed, step-by-step knowledge that forms the foundation of AI models could be at risk. Unfortunately, many consumers seem content with the convenience of Google’s AI answers, even acknowledging their potential for errors. This preference for convenience raises concerns about the long-term implications for the quality and reliability of online information.
Chegg’s legal battle against Google underscores a critical challenge in the age of AI: balancing the convenience of AI-generated information with the need to support the creation of original, high-quality content that ultimately powers these very AI systems.
