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AI's First Casualty: Chegg's Stock Tumbles 99%

Welcome to this week's edition of Jumble, your go-to source for the latest in AI. This issue covers the decline of Chegg, a textbook and homework help website, and the beta release of Apple Genmoji. It’s a packed week in AI and here’s what you need to know ⬇️

In today’s newsletter:
📓 Chegg falls off
😜 Genmoji hits iOS 18.2 public beta users
📸 Instagram testing AI profile image generation
☎️ Racist and harmful AI call in city council meeting
🍦 Get the scoop on the latest news

Chegg Is on Life Support as AI Reigns Supreme 📓

In a stunning turn of events, Chegg, once a titan in the online education industry, has experienced a dramatic downfall following the launch of ChatGPT. The company's stock has plummeted by 99% since early 2021, erasing a staggering $14.5 billion in market value.

Subscriber Exodus
Chegg has lost over half a million subscribers since ChatGPT's debut, with students abandoning their paid subscriptions in favor of the free and instant AI-powered alternative. A recent survey revealed that only 30% of college students intended to use Chegg this semester, down from 38% in the spring, while 62% planned to use ChatGPT, up from 43%.

Chegg's Response
Facing this existential threat, Chegg has taken several steps to adapt:

  • Leadership change: CEO Dan Rosensweig stepped down in June, replaced by Nathan Schultz.

  • Workforce reduction: 441 employees were laid off, nearly a quarter of Chegg's staff.

  • AI integration: The company developed and has since abandoned its own AI products, including a ChatGPT-like interface for its website.

  • Strategic pivot: Chegg is now targeting "curious learners" by offering more comprehensive answers and services like counseling.

The Chegg story serves as a cautionary tale for businesses across all sectors. As AI technologies like ChatGPT continue to evolve, companies must adapt quickly or risk obsolescence. The challenge lies in providing value that goes beyond what free AI tools can offer.

For industries ranging from finance to healthcare, manufacturing to retail, the rise of AI presents both opportunities and ethical concerns. While AI tools can provide instant solutions and streamline processes, they also raise questions about job security, privacy, and the nature of human expertise.

As the dust settles, one thing is clear: the landscape of virtually every industry has been irrevocably altered by the advent of AI. Companies, professionals, and consumers alike must navigate this new terrain carefully, balancing the benefits of technology with core human values and ethical considerations.

Unleashing Creativity with iPhone's Genmoji 😜

Apple's new Genmoji, part of the iOS 18.2 public beta, is an AI feature that generates custom emojis based on text inputs. It's designed to expand the range of expressive options beyond the standard Unicode emoji set, allowing users to create unique, personalized emojis for their conversations.

Here are some examples users shared on X:

Genmojis created by @numbtheflame, @we4v3r, @basswich, @ConnorCrosby, @Marks_Tech, @BrightMinho, @gbmksquare, @MaxWinebach, @LeakerApple, @AlbGarD

Genmoji is available on:

  • iPhone 15 Pro and Pro Max

  • iPhone 16 series

  • iPads and Macs with M-series chips

It's important to note that Genmoji is part of the Apple Intelligence features, which are not available in all regions.

Bests and Busts

Here's a look at this week's AI highlights and lowlights:

Best: AI Tool May Offer Quick, No-Contact Blood Pressure and Diabetes Screening
A novel AI-powered system utilizing high-speed video analysis of the skin can detect high blood pressure and diabetes, potentially transforming home health monitoring. This contactless method, still under development, promises to simplify health screenings and improve early diagnosis and treatment adherence.

💩 Bust: ‘Racist and Harmful’ AI-Generated Call Into Austin City Council Meeting
An AI-generated call filled with offensive content during an Austin City Council meeting has prompted urgent investigations into public forum security. The incident highlights the potential dangers of AI misuse and sparks debates on balancing freedom of speech with public safety.

The Scoop 🍦

🏥 Next Time You Go Under the Knife, There’s a Chance a Robot Will Hold the Scalpel
Advances in AI and robotics are increasingly enabling robots like the Da Vinci surgical system to perform complex surgeries with high precision and autonomy. This evolution in healthcare technology not only promises safer, more consistent surgical outcomes but also aims to meet the rising demand for surgical procedures as the global population ages.

🐕 AI-Powered System Teaches Robot Dog New Tricks
MIT researchers have developed a system that uses generative AI models and physics simulators to create virtual training environments for robots. The system successfully taught a robot dog to perform parkour-like tasks, such as climbing stairs and navigating obstacles, without real-world data. The system outperformed traditional training methods in tests, achieving higher success rates in various tasks.

Photo by MIT CSAIL

🎤 Jerry Garcia’s AI-Created Voice Can Now Narrate Audiobooks, Articles and More
The late Grateful Dead guitarist Jerry Garcia's voice has been digitally recreated to narrate a variety of content in multiple languages via the ElevenReader app, providing an "Iconic Listening Experience." Supported by Garcia’s estate and Eleven Labs, this voice model may also be used for documentaries and audio art exhibits.

🌌 AI-Enhanced Model Could Improve Space Weather Forecasting
Researchers from Los Alamos National Laboratory and the University of North Carolina at Chapel Hill have developed an AI-enhanced model to accurately predict the movement of high-speed "killer electrons" in Earth's radiation belts, improving space weather forecasting and satellite protection. 

📸 Instagram’s Testing Simplified AI Profile Image Generation
Instagram is developing a new feature allowing users to easily create AI-generated profile images directly from their profile settings, tapping into Meta's AI tools for a more stylized representation. This move aligns Instagram with other social platforms like Facebook, TikTok, and Snapchat, which already offer similar AI image generation features.

Photo by Alessandro Paluzzi

🔫 The AI Machine Gun of the Future Is Already Here
The Pentagon is actively testing an AI-enabled autonomous robotic gun system, "Bullfrog," designed by Allen Control Systems, to combat the threat of low-cost adversary drones. This system, featuring a 7.62-mm M240 machine gun mounted on an AI-driven turret, aims to enhance precision in shooting down fast-moving drones, offering a cost-effective and potentially transformative solution to modern warfare challenges.

🎶 Randy Travis's Beautiful Baritone Was Lost. AI Helped Him Sing Again
Randy Travis, having lost his ability to sing due to a stroke, has made a touching comeback with an AI-generated song, "Where That Came From," marking the first AI song recorded and released with full artist involvement. This breakthrough not only showcases AI's potential in reviving artists' careers but also ignites discussions on the ethical use in the music industry.

🏠 Real Estate Company Used AI to Generate False Estate Listing
LJ Hooker, a real estate branch, admitted to using AI for property listings, leading to an error where a home in Farley, NSW, was advertised as close to two “excellent” schools that didn’t actually exist. This incident has raised concerns about the accuracy and oversight of AI-generated content in real estate advertising.

🌐 China's Alibaba Releases AI Search Tool For Small Businesses
Alibaba has unveiled an AI-powered search engine designed to help small businesses in Europe and the Americas source supplies more efficiently. The tool, which supports multiple languages, uses generative AI from Alibaba's Tongyi Qianwen large language model to analyze product popularity and projected profits. Initial tests show a 40% increase in purchase intent compared to traditional search engines. 

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Our research team spends hundreds of hours a week summarizing the latest news, and finding you the best opportunities to save time and earn more using AI.

Thank you for being a valued reader of Jumble! See you next week for more updates on the latest trends and developments in AI.

Stay informed, stay curious, and stay ahead with Jumble!

Zoe from Jumble