TL;DR
- AI startup Cluely, which enables users to “cheat” on job interviews, exams, and calls using real-time AI tools, raised $15 million in Series A funding led by Andreessen Horowitz (a16z).
- The company was co-founded by controversial 21-year-old entrepreneurs Roy Lee and Neel Shanmugam, who were previously suspended from Columbia University.
- With a post-money valuation estimated at $120 million, Cluely continues to court both investor enthusiasm and public criticism.
- The startup’s growing notoriety stems from its provocative marketing tactics, including AI-assisted deception videos and a police-interrupted party during Y Combinator’s AI Startup School.
A Startup That Redefines AI Ethics
In a move that merges technological innovation with ethical controversy, Cluely announced it has raised $15 million in Series A funding led by Andreessen Horowitz (a16z). The announcement was made via a stylized promotional video posted to X (formerly Twitter) by CEO Roy Lee, a 21-year-old entrepreneur whose flair for drama has become part of the startup’s identity.
Cluely’s software allows users to deploy real-time AI tools that provide suggested responses during job interviews, academic exams, and even sales pitches — tools that critics argue blur the lines between assistance and deception.
According to TechCrunch, investors not involved in the round estimate the company’s valuation to be around $120 million, though a16z has declined to confirm.
From Suspension to $120M Valuation
Cluely’s founders, Roy Lee and Neel Shanmugam, made headlines earlier this year when they were suspended from Columbia University for developing a tool called Interview Coder, which provided undetectable AI-generated answers during technical engineering interviews.
That same technology has since evolved into Cluely’s core offering — a platform for real-time AI-enhanced communication that, in Lee’s own words, enables users to “cheat on everything.”
The startup first gained traction with a $5.3 million seed round in April, co-led by Abstract Ventures and Susa Ventures. With the latest infusion of capital, the company appears poised to scale aggressively, despite the mounting scrutiny.
Cluely Funding Timeline and Notable Milestones
| Date | Event | Source |
| April 2025 | Raised $5.3M seed round (Abstract & Susa Ventures) | TechCrunch |
| June 2025 | Raised $15M Series A led by Andreessen Horowitz (a16z) | TechCrunch |
| April 2025 | Viral AI-assisted dating deception video released | Cluely X Video |
| June 2025 | YC AI party shut down by police amid 2,000-person crowd | TechCrunch |
AI Tools That Challenge the Norm
What differentiates Cluely isn’t just its technology, but its open embrace of controversial use cases. Its AI platform functions as a real-time co-pilot, offering scripted suggestions for how users should answer questions in high-pressure or evaluative settings. While the company insists it’s offering an “assistive” tool, others view it as gamifying dishonesty.
In a prior product demo, Lee was seen on a dinner date using Cluely’s AI assistant to feign expertise in art and hide his age — prompting a wave of online backlash but also a surge in user interest.
In many ways, Cluely seems to be using controversy as a growth engine.
Investor Appetite Despite Backlash
The participation of a16z — a fund known for bold bets in AI — suggests that investor appetite for disruptive AI tools remains high, even in ethically ambiguous sectors. Cluely’s profitability claims (shared by Lee in several podcasts) only bolster its attractiveness among VCs looking for strong unit economics in a crowded AI space.
Critics, however, argue that companies like Cluely contribute to techno-dystopian norms, where authenticity is commodified and manipulated through artificial intelligence. Education and corporate communities have already flagged concerns over Cluely’s potential misuse in recruiting, admissions, and certification processes.
Viral Tactics and Real-World Consequences
Earlier this week, Cluely again found itself in the spotlight when it attempted to host an after-party following Y Combinator’s AI Startup School, attracting more than 2,000 attendees. According to TechCrunch, local police shut down the event due to overcrowding and safety risks.
Lee responded with trademark bravado, telling TechCrunch: “We did some cleanup, but the drinks are all there waiting for the next party.”
Such incidents are reinforcing Cluely’s brand as one built on disruption — not just of industries, but also of norms and expectations.
Industry Implications and Ethical Dilemmas
Cluely’s rise raises serious questions about AI’s role in truthfulness, privacy, and professional integrity. While generative AI continues to reshape education, recruitment, and communication, tools like Cluely test the limits of what users — and investors — are willing to accept.
It’s not the first AI platform to face scrutiny for encouraging shortcuts, but it may be the most unapologetic. As other startups seek to provide productivity enhancements, Cluely leans heavily into “competitive advantage through manipulation,” a positioning that is both provocative and divisive.
The Road Ahead
Cluely’s trajectory suggests that it will continue to attract attention — and potentially regulatory scrutiny — as it expands. For now, the company seems undeterred, with new product updates, additional funding, and more viral content likely on the horizon.
While critics worry about the erosion of trust in evaluations and interactions, supporters argue that Cluely is democratizing access to communication support in a world where everyone is already using AI quietly.
Whether Cluely becomes a mainstay in enterprise and education or a cautionary tale about the limits of AI ethics remains to be seen.
