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San Francisco-based startup Cluely, developing an AI cheating tool designed to assist users in various scenarios, from exams to job interviews, has announced the successful completion of a $5.3 million seed funding round. Chungin “Roy” Lee, the 21-year-old founder of Cluely, secured the investment from Abstract Ventures and Susa Ventures, signaling strong investor interest in the controversial yet innovative technology.
AI “Cheating” Startup Cluely Raises $5.3 Million in Seed Funding
The genesis of Cluely can be traced back to a widely circulated thread on X where Lee recounted his suspension from Columbia University. The disciplinary action followed the development of a tool, created by Lee and his co-founder, initially intended to facilitate “cheating” on technical job interviews for software engineers.
From University Suspension to Startup Launch
This initial tool, formerly known as Interview Coder, has now evolved into a core component of Cluely. The startup, headquartered in San Francisco, offers users the ability to gain an unfair advantage in situations such as examinations, sales interactions, and employment interviews. This is achieved through a concealed in-browser window, imperceptible to proctors or interviewers, effectively enabling users to access external information surreptitously.
The Functionality of Cluely’s AI Tool
Cluely has released a public statement, drawing parallels between its AI assistant and inventions like calculators and spell checkers. The company argues that these now-commonplace tools were once similarly condemned as methods of “cheating,” suggesting a historical precedent for the adoption of tools initially perceived as unethical.
Controversial Marketing and Public Reaction
To promote its launch, Cluely released a polished promotional video featuring Lee utilizing a hidden AI assistant in a social setting. The video, depicting Lee attempting to mislead a woman about his age and knowledge during a date, has garnered mixed reactions. While some observers lauded the video’s ability to capture attention and generate buzz, others criticized it as unsettling and evocative of dystopian themes, drawing comparisons to the television series “Black Mirror.”
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Leadership and Company Growth
According to Lee, who serves as CEO of Cluely, the AI cheating tool has achieved significant traction, surpassing $3 million in annual recurring revenue (ARR) earlier this month. Neel Shanmugam, also 21 years old and a former Columbia student, is the co-founder and COO of Cluely. Shanmugam was also reportedly subject to disciplinary proceedings at Columbia University related to the AI tool.
Both Lee and Shanmugam have since withdrawn from Columbia University, as reported by the university’s student publication. Columbia University declined to comment on the matter, citing student privacy regulations.
Origins and Target Audience
Cluely‘s origins lie in addressing perceived inefficiencies in technical assessments. The initial tool was designed to assist software developers in navigating LeetCode, a platform known for coding challenges. The founders, among others in the software engineering community, view LeetCode as an outdated and inefficient method for evaluating technical skills.
Amazon and the Use of Unauthorized Tools
Lee has claimed to have successfully used the AI cheating tool to secure an internship at Amazon. While Amazon declined to comment on Lee’s specific case, the company stated that all job candidates are required to confirm they will not employ unauthorized resources during the interview process. This highlights the ongoing debate surrounding the ethical use of AI in high-stakes assessments and professional settings within the technology sector.
Wider Context of AI Startups
Cluely‘s launch coincides with a broader wave of controversial AI startups entering the market. Notably, another AI researcher recently launched a startup with the ambitious and provocative objective of automating all human employment, sparking considerable discussion and controversy online. This context underscores the rapidly evolving landscape of AI technology and its increasing impact on various aspects of society.