Cluely, a provocative AI startup born from academic controversy, just closed a $5.3 million seed round led by Abstract Ventures and Susa Ventures.
According to Futurism, the company's core product is a real-time, invisible AI assistant that operates through a hidden browser overlay, giving users live answers during interviews, coding tests, exams, and even meetings.
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Ivy League Fallout Sparks a $5.3M AI Startup
The founders, Chungin "Roy" Lee and Neel Shanmugam dropped out of Columbia University after being suspended for creating the early version of the tool, known then as Interview Coder. That tool, built to help candidates navigate technical interviews on platforms like LeetCode, quickly went viral and caught the attention of Columbia's disciplinary board.
Within weeks of their suspension, the co-founders rebranded the product and announced the funding round on LinkedIn. Their AI, marketed as "completely undetectable," sees the screen, hears the audio, and feeds the user context-specific responses in real time.
In an interview with the New York Times' "Hard Fork” podcast, co-founder Lee stated, “I read the student handbook quite thoroughly before I actually started building this thing […] but I didn't actually expect to get expelled at all. And the student handbook very explicitly doesn't mention anything about academic resources.”
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Growth and Backlash in Equal Measure
The $5.3 million funding round, completed in just a few weeks following Cluely's rebrand, is being seen as a sign of growing investor appetite for new forms of human-AI collaboration, particularly in areas where performance pressure and assessment bias remain high.
Since launching its current version, Cluely has reported more than $3 million in annual recurring revenue. While critics have raised ethical questions about the software, supporters argue that it highlights inefficiencies in existing gatekeeping systems, particularly the widespread reliance on memorization-heavy assessments like LeetCode in technical hiring processes, writes Business Today.
A recent promotional video shared by the founder on X showed Lee using the software during a date to fabricate knowledge and facts in real-time, sparking debate across social media. While some saw the demonstration as a humorous take on modern dating and digital dependence, others likened it to scenarios featured in dystopian fiction such as Black Mirror. Some developers have already attempted to counteract Cluely's software, with one Reddit user claiming to have created a Swift-based tool that detects the platform when it is running.
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Future Outlook and Industry Impact
Despite the public controversy, the startup continues to gain traction across industries. Early adopters include tech workers preparing for job interviews, sales professionals seeking support during live calls, and students managing online exam environments. According to Fortune, Cluely offers unlimited access to its AI tool through a subscription model priced at $20 per month or $100 annually.
With funding, momentum building, institutional support from respected venture firms, and rapidly growing user demand, Cluely is signaling a broader shift in the conversation around AI, merit, and human augmentation. Whether the world sees that as a threat or an evolution remains to be seen.
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