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CHGG News
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Google Successfully Dismisses Lawsuits from Chegg and Penske
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.SUIT DISMISSAL:Alphabet'sGoogle has persuaded a U.S. federal judge to dismiss lawsuits from education technology company Cheggand Rolling Stone publisher Penske Media that alleged the search engine giant unlawfully used their content in AI-generated summaries that draw readers away from their websites, Reuters' Mike Scarcella. In his ruling on Wednesday, U.S. District Judge Amit Mehta in Washington said Chegg and Penske's claims that Google's business practices violate antitrust law "fail to get out of the starting gate." "Plaintiffs have pleaded only that they have an 'expectation' that Google will send them search traffic if they make their content available for free," Mehta wrote. "But an expectation is not an agreement. It is simply how a general search engine works."INVESTIGATIVE SUBPOENA:California Attorney General Rob Bonta served an investigative subpoena on OpenAI as part of the California Department of Justice's ongoing investigation of incidents resulting from the operations of OpenAI and its artificial intelligence models. Last month, Attorney General Bonta announced that DOJ is conducting a formal investigation into the Hugging Face incident, while continuing to more broadly monitor the AI industry's compliance with California laws. The subpoena is part of a broader inquiry into cybersecurity incidents and risks involving the company and its models. "My office is asking OpenAI additional questions regarding cybersecurity incidents and risks involving the company and its AI models," said Attorney General Bonta. "Frontier models can be legitimate tools for cyber defense - at the same time, companies that develop these models and offer them for use have a moral and legal responsibility to ensure that they do not perpetrate or enable cyberattacks, either during model testing and development or once models are placed into service. Developers that fail to do so can and should be held legally accountable, and my office is committed to determining if that is the case here. As the top law enforcement official of California, I am committed to using all the tools at my office's disposal to keep California's residents safe," said the AG.AI UPSCALING:Sony'sPlayStation business announced Quick Spectral Super Resolution, or QSSR, a new performance tier of AI upscaling. Born from Project Amethyst, Sony's AI graphics collaboration with AMD, this quick new evolution of PSSR is built on two key innovations: A streamlined neural network architecture, and; A hand-tuned implementation that maximizes performance on PS5. "With these, we are bringing the benefits of AI-guided upscaling to PS5," the company said. "While PSSR remains the gold standard on PS5 Pro, QSSR provides some notable improvements to both image detail and image stability on PS5. The first titles to use this innovative new library are Marvel's Wolverine and Ghost of Yundefinedtei. Both are being patched today to offer QSSR as an additional graphics option on PS5."AI INDUSTRY PLEDGE:MetaCEO Mark Zuckerberg helped initiate and draft the principles behind the White House's voluntary AI industry accord, working with Nvidia'sJensen Huang and other executives to address regulatory and safety concerns, Semafor's Ashley Gold, citing sources. The agreement, signed by Meta, OpenAI, Anthropic, xAI, Google, and Nvidia, commits companies to internal controls and outside audits but leaves implementation details limited.
Chegg Expands Mission to Support Student Internships
Chegg announced a major expansion of its mission, moving beyond academic support to help students navigate one of the most challenging and critical steps in launching a career: securing the right internship. This expansion represents another step in broadening Chegg's relationship with students beyond academic support and into career outcomes. Chegg now provides an integrated internship experience that brings together opportunity discovery, application creation and submission, skills assessment and development, professional networking, and interview preparation.
Sees Q3 Adjusted EBITDA of $1M-$2M
Sees Q3 adjusted EBITDA $1M-$2M
Chegg Reports Q2 Revenue of $51.8M
Reports Q2 revenue $51.8M vs $105.120M last year. "In Q2 we outperformed our expectations on revenue, adjusted EBITDA, and cash, reflecting our ability to execute against our priorities while investing for future growth," said Dan Rosensweig, CEO and Executive Chairman of Chegg. "Our long-term goal remains the same: return Chegg to growth with high margins and strong free cash flow."
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