Cluely, the controversial AI startup originally built to help users “cheat on everything," has raised $15 million in a new funding round led by venture capital powerhouse Andreessen Horowitz, co-founder Chungin “Roy” Lee announced on X on June 20.
The San Francisco-based company was co-founded by 21-year-old Lee, who rose to notoriety earlier this year after being suspended from Columbia University for launching an early version of the software, TechCrunch says. Cluely's other co-founder, Neel Shanmugam, also 21 and a former Columbia student, serves as the company's chief operating officer. Like Lee, Shanmugam faced disciplinary action at Columbia related to the AI tool. According to TechCrunch, both founders have since dropped out.
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Originally called "Interview Coder," the tool helped software engineers cheat on technical job interviews by providing real-time, AI-generated answers while the interview was in progress, TechCrunch says.
Although Cluely has since scrubbed explicit references to cheating from its website, Business Insider reports that the platform still promotes itself as an "undetectable" AI assistant capable of viewing the user's screen and feeding answers in real-time during high-stakes conversations like interviews, exams, and sales calls.
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How a Columbia Suspension Became a Springboard for Virality
According to TechCrunch, Lee's suspension from Columbia accelerated his momentum. His viral online presence, often driven by controversial videos and stunts, has helped Cluely break through the noise in a crowded AI market.
In April, Cluely released a video in which Lee used the software to impress a woman on a date by pretending to know about art, wealth, and wine. The comedic tone turned heads across social media, but not everyone was amused, TechCrunch says.
Earlier this week, the startup attempted to throw a massive after-party following Y Combinator's AI Startup School. According to TechCrunch, police intervened after 2,000 people flooded the venue and stopped the party.
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Lee told Business Insider the company's top priority is achieving 1 billion total views across all social platforms. "We'll do pretty much whatever it takes to do that," he said.
That ambition is reflected in the company's new hiring strategy. Cluely announced on LinkedIn that it will bring on 50 "growth interns" who will each be required to post four TikToks per day promoting the brand.
Andreessen Horowitz partner Bryan Kim told Business Insider that Lee is a "founder with the boldness to rethink what’s possible," which highlights Andreessen Horowitz's support for Lee's unconventional vision. “We backed Roy early because he brings a rare mix of vision and fearlessness,” Kim said.
Cluely's Future Includes Profitability, Pushback, and Potential
Cluely's $15 million Series A round follows a previous $5.3 million seed investment co-led by Abstract Ventures and Susa Ventures. Two unnamed investors told TechCrunch they believe the startup's current post-money valuation is approximately $120 million, although neither the company nor Andreessen Horowitz confirmed that figure.
According to multiple posts from Lee on X and podcast appearances, Cluely is already profitable, TechCrunch says. Lee's provocative social media presence, including highly produced and often controversial videos, has played a key role in building brand awareness and driving public attention to Cluely.
While Cluely's rapid rise has drawn praise for its bold marketing and attention-grabbing tactics, some reactions have been more critical. One of the company’s launch videos was compared by viewers to the dystopian themes of "Black Mirror," showcasing a broader tension between innovation and ethical boundaries in emerging AI tools, TechCrunch reports.
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