Chegg' s 48% stock price plunge on Tuesday, driven by comments in the company's earnings report about the risks of artificial intelligence, was "extraordinarily overblown," CEO Dan Rosensweig told CNBC Tuesday.
On Monday's earnings call, Rosensweig said ChatGPT, the suddenly popular chatbot from startup OpenAI, was "having an impact on our new customer growth rate."
"I think this is extraordinarily overblown, and I don't normally say that, I don't really talk about the stock price much," Rosensweig said.
Rosensweig noted that ChatGPT struggles with delivering accurate answers, a phenomenon known as hallucination, and a problem in the academic world.
"ChatGPT is often wrong, and it's not going to be right anytime soon."