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A Slow Death by ChatGPT
Diving into ed tech, AI learning assistants, OpenAI lawsuit, Saylor's latest Bitcoin acquisition, and more!
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December 29, 2023
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∆ Tech in the News
NYT Sues OpenAI Over Copyright - After months of deliberation, the NYT officially filed suit against OpenAI over their use of data used to train ChatGPT.
SpaceX's Falcon Heavy Launches US Space Force X-37B - Fifth Falcon Heavy mission of the year from NASA's Kennedy Space Center, carrying a classified payload.
Michael Saylor Acquires Another $615M BTC - Microstrategy now holds ~1% of Bitcoin supply as Saylor sold another round of stock shares.
$11B in Revenue from Children and Teens in 2023 - Harvard study finds social media apps like Snapchat, Instagram, and TikTok made billions off of youth this year.
Hackers Stole $2B in Crypto in 2023 - This number (surprisingly) is much less than previous years with the highest at $3.8B in 2022.
Apple Watch Back on Shelves - Charged with patent infringement against Massimo, Apple will make changes to their watch to comply with court ruling.
[POLL] Could Chegg's stock rise another 30%... |
˚The Hottest Thing in Tech this Week
Could Chegg Recover from their Slow ‘Death by ChatGPT’?
The Chegg story began as one of disruption, bringing online learning tools to students and transforming the landscape of education. But since their peak in 2021, the Chegg stock has taken a significant nose dive dropping more than 90% and facing significant challenge to compete with the widely accessible chatbots that came out at the beginning of this year. And Rosensweig’s revelation in May of ChatGPT impacting their growth only added fuel to the fire.
Chegg 50% drop in May
In August, Chegg announced their partnership with Scale AI to transform their data into a dynamic learning experience for students after already collaborating with OpenAI on Cheggmate. A recent release by HBR highlights the potential value that Chegg’s specialized AI learning assistants may bring to a student’s learning experience citing 1) feedback loops, 2) continuous model improvement, and 3) training on proprietary datasets as the keys to success.
Yet, the question remains: Can Chegg effectively harness their user data with AI to reclaim lost territory or capture new revenue streams, or is it fighting a losing battle against the rapidly evolving GenAI landscape? While the future might seem uncertain, Chegg's current valuation hints at a potential recovery with a 10% gain from lows in the past month.
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Career Hive
This section will feature job opportunities from across the tech sector. Contact us to submit a job or apply below:
Chief of Staff (US - Remote) - Join a recently funded Series A+ AI startup
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Deals We’re Watching
Founders to Watch and Opportunities to Catch
Open Deals:
OpenAI making plans to raise at $100B+ valuation - Sam is back and also in talks to fund their chip venture.
Fabric Pay Seeks $1M in exclusive bridge - Targeting the $600B Ad Market, Paying Users for Data through tokenization and digital banking. Speak with Founder - Paul Taylor
MOOV's $500K Seed Round - Transforming K12 with Student-Friendly Super App, $106K ARR, Pilot in Philly, $100k committed. Connect with Co-Founder, Gabriel Klinker
Raising for your startup?
Send us your Open Round —> [email protected]
Closed Deals:
TuMeke Raises Series A - Solving workplace muskuloskeletal injury in manufacturing facilities with computer vision and $10M led by Intel Cap.
A Push for Digital Identity - Yoti raised another $20M in a mix of debt and convertible notes towards regtech solutions
Cheddar Acquired for “Free” - Regent media subsidiary bought the struggling media company in ‘earn out’ with previous sale to Altice for $200M in 2019.
Companies to Watch:
Kazakstan Fintech Giant Eyes US IPO - Kaspi.kz shows impressive yearly growth and is currenly listed on London exchange at a $19B valuation.
The Funding Buzz
Greylock Fund 17 - A $1B fund raised towards AI-first companies across a number of industries including cybersecurity, crypto, fintech, and saas.
Top VC’s Predict 2024 AI Trends - Multimodal, GPU shortages, and the decline of moat-less generative AI startups are a few of the top trends to watch out for next year.
Tools and Buzzy Tech
TypingMind - Build private and secure AI chat for your team
AIMagicx - Launch chatbots, create logos, design images and more with AI
Pika 1.0 (Live) - Create AI generated videos with near-Hollywood grade design quality
Microsoft CoPilot- Now you can run copilot on your Android phone for free
[POLL] Where will you be celebrating New Years this year? |
Deals are a bit slower this time of year but absolutely happening! If you have not done so already, be sure to check out our year-end stories:
Stay buzzy and Happy New Year!
The Tech Buzz Team