Columbia Dropouts Raise $5.3M for AI Interview Cheating Tool

Columbia Students Suspended Over AI Cheating Tool Raise $5.3M for Startup Cluely

In a world where AI tools are reshaping work and education, two Columbia University dropouts are turning controversy into capital. Meet Cluely, the AI startup born out of academic scandal that just raised $5.3 million in seed funding to help users “cheat on everything.”

Founded by 21-year-olds Chungin “Roy” Lee and Neel Shanmugam, both former students of Columbia University, Cluely is the result of a viral moment turned full-fledged tech venture. The duo was suspended after creating an AI tool, originally dubbed Interview Coder, that stealthily assisted users during software engineering interviews.

Now rebranded and expanded, Cluely offers a suite of AI-powered tools aimed at "enhancing" user performance in interviews, exams, sales calls, and even dates, through a hidden in-browser window invisible to the person on the other side.

From Columbia Classrooms to Silicon Valley Checks

Lee announced the $5.3 million seed round on Sunday, led by Abstract Ventures and Susa Ventures, two well-known early-stage backers in the startup ecosystem. Despite, or perhaps because of, the controversy, the founders have already scaled their platform to $3 million in annual recurring revenue (ARR).

According to Lee, the idea behind Cluely is rooted in frustration with what they see as outdated technical evaluation systems, such as LeetCode, which many developers must master to pass tech interviews. Their manifesto even likens Cluely to the early backlash against calculators or spellcheckers, tools once dismissed as crutches, now standard in daily life.

What Does Cluely Actually Do?

Cluely enables users to discreetly access real-time AI guidance during high-stakes interactions. Think of it like an invisible ChatGPT assistant feeding you the right things to say, code, or ask, without anyone else knowing.

The tool runs in-browser and can be hidden during Zoom interviews, proctored tests, or sales negotiations. While this has drawn serious ethical concerns, Cluely markets itself as an empowerment tool, giving users a "fairer shot" at success in high-pressure environments.

Its latest product demo? A slick launch video showing Lee using the AI to impress a woman on a dinner date by pretending to know about art and fine wine. Spoiler alert: It doesn’t end well, but the video went viral drawing both laughs and alarm on X (formerly Twitter).

Polarizing But Profitable

Reactions to Cluely have been deeply divided. On one hand, tech enthusiasts and venture capitalists see it as another disruptive AI product challenging outdated norms. On the other, critics warn that tools like Cluely normalize dishonesty, blur ethical boundaries, and could erode trust in human interaction entirely.

Some compared Cluely’s concept and branding to episodes of Black Mirror, a dystopian sci-fi series known for exploring the dark side of tech.

Even so, investors seem undeterred. Abstract and Susa Ventures believe Cluely could become a dominant player in AI-driven personal productivity tools, especially among Gen Z and young professionals trying to break into competitive job markets.

A Tale of Two Dropouts

Both co-founders, Lee and Shanmugam, have dropped out of Columbia following their suspensions. Their disciplinary cases revolved around using their tool in real job interviews, reportedly even landing Lee an internship at Amazon using the AI. While Amazon declined to comment on the case, the company stated that candidates must agree not to use unauthorized tools during interviews.

Columbia University, meanwhile, declined to make any statement, citing student privacy laws under FERPA.

Despite the academic fallout, Cluely is growing fast, fueled by word-of-mouth, viral marketing, and a user base that views the platform as a career accelerator rather than a moral hazard.

In-Depth: The AI Cheating Debate

The Cluely controversy ties into a broader, ongoing debate: Is using AI to “enhance” your performance cheating, or is it just the new normal?

Some educators argue that AI assistance undermines learning, making it easier for students to pass without truly mastering content. Meanwhile, others believe tools like ChatGPT and Copilot are part of the future of work and should be embraced in the learning process.

Cluely’s founders are clearly on the latter side. In their words, “We don’t believe in cheating, we believe in leveling the playing field.”

Still, their success raises questions about how far AI should be allowed to go when it comes to academic integrity, job interviews, and professional ethics.

Final Thoughts

What started as a viral suspension story has become a funded startup challenging the norms of education, hiring, and even dating. Cluely may be controversial, but it’s also a sign of the times, where artificial intelligence blurs the line between help and dishonesty.

Whether you see Cluely as a tool for empowerment or erosion of trust, one thing’s for sure: it’s forcing us all to rethink what fairness and merit really mean in an AI-driven world.

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