Chegg Inc. is facing a potential loss of nearly $1 billion in market valuation as ChatGPT's popularity grows, leading to a 47% drop in the company's shares. As Chegg suspends its full-year outlook and estimates Q2 revenue below Wall Street expectations, Chegg CEO Dan Rosensweig admits that ChatGPT has significantly impacted the growth rate of new customers to the company's platform. Still, some analysts worry that Chegg's core business may become obsolete due to the rise of free AI tools, and express uncertainty over whether the company's AI-powered study aid, CheggMate, can counter the slowdown, even if ChatGPT is creating more awareness around Chegg's solutions in the short-term. Meanwhile, Chegg's UK rival, Pearson PLC, has seen an 11.5% decline in shares.