Chegg is suing Google dad or mum Alphabet over claims the search engine’s synthetic intelligence abstract instrument has hit its revenues, main the US-listed academic expertise group to weigh up a sale of the enterprise.

California-based Chegg, which offers research instruments for college kids, filed the grievance on Monday claiming that Google AI Overviews, which presents customers with abstract solutions to their queries, serves to maintain customers on Google’s personal web site.

Chief govt Nathan Schultz stated the search large’s AI search modifications had “unjustly retained site visitors that has traditionally come to Chegg, impacting our acquisitions, income and staff.”

He added this was “materially impacting” revenues, main the corporate to instigate a strategic income through which it will discover “a spread of options to maximise shareholder worth, together with being acquired, enterprise a go-private transaction, or remaining as a public standalone firm.”

Google stated: “With AI Overviews, folks discover search extra useful and use it extra, creating new alternatives for content material to be found. Every single day, Google sends billions of clicks to websites throughout the online, and AI Overviews ship site visitors to a higher range of websites. We’ll defend in opposition to these meritless claims.”

Chegg’s transfer comes as developments in AI shake world industries, from well being care to training and the automotive sector. The quick improvement of generative AI since OpenAI launched ChatGPT in November 2022 has upended demand for edtech firms’ paid-for on-line studying instruments, main their valuations to plummet.