EdTech Giant Warns of a “Hollowed-Out” Internet as AI-Generated Content Threatens Online Ecosystem
Chegg, a leading online education platform, has taken Google to court, accusing the tech giant of undermining digital publishers with its AI-generated search overviews. In a lawsuit filed Monday in Washington, D.C., Chegg claims that Google’s artificial intelligence-driven summaries are siphoning traffic away from original content creators, threatening the future of online publishing.
The lawsuit represents a groundbreaking legal challenge, as it is the first standalone antitrust case directly targeting Google’s use of AI-generated content. Chegg asserts that by presenting AI-generated answers in search results, Google is eliminating the financial motivation for publishers to produce high-quality, original content—ultimately eroding the reliability of online information.
Chegg’s Fight for Survival
Santa Clara-based Chegg, known for textbook rentals, tutoring, and homework assistance, attributes a steep decline in its website traffic and subscriber base to Google’s AI-driven search features. CEO Nathan Schultz stated that the company is now considering drastic measures, including a potential sale or going private.
“Google is profiting from our expertise and content without offering fair compensation,” Schultz said. “This isn’t just about Chegg—it’s about the survival of digital publishing, the integrity of online search, and ensuring students have access to verified, high-quality educational resources instead of AI-generated shortcuts.”
Chegg’s financial struggles reflect the gravity of the issue. The company’s stock closed at just $1.57 on Monday, a staggering 98% drop from its 2021 peak. In November, Chegg announced a 21% workforce reduction amid its ongoing downturn.
Google’s Defense: AI Creates Opportunity, Not Harm
In response to the lawsuit, Google dismissed the claims as baseless. Company spokesperson Jose Castaneda argued that AI-driven search enhancements benefit users and content creators alike.
“AI Overviews make Search more helpful, increasing engagement and creating new opportunities for content discovery,” Castaneda stated. “Google directs billions of clicks to websites daily, and AI Overviews help drive traffic to a wider range of sources.”
However, Chegg maintains that Google’s AI summaries discourage users from clicking through to original sources, cutting off a critical revenue stream for publishers.
Legal Battle Over AI and Digital Content
The core of Chegg’s argument is that Google is exploiting publishers by leveraging their content for AI overviews while pressuring them to grant access for search indexing. Traditionally, Google’s search engine has operated under a trade-off—publishers allow their pages to be crawled in exchange for visibility and referral traffic. But Chegg claims this dynamic has shifted, with Google now leveraging its dominance to force publishers into an unfavorable position.
The lawsuit contends that Google is violating antitrust laws by tying the use of its search engine to AI-generated content, a practice that could have far-reaching consequences beyond the education sector.
A Broader War Against Google’s AI Domination
While Chegg is the first individual company to take direct legal action against Google over AI-generated content, it is not alone in its concerns. In 2023, an Arkansas newspaper filed a class-action lawsuit on behalf of the news industry, making similar accusations against Google. That case is being overseen by U.S. District Judge Amit Mehta, who recently ruled that Google holds an illegal monopoly in online search.
Chegg’s lawsuit signals a growing resistance against Google’s AI-driven content strategy—one that could reshape how digital information is produced, monetized, and consumed. As the legal battle unfolds, it may determine whether publishers can continue to thrive in an internet increasingly dominated by AI-generated knowledge.