AI cheating tool startup raises $15 million in funding

AI startup Cluely has secured $15 million in seed funding led by Andreessen Horowitz (a16z), about two months after closing a $5.3 million seed round. Founded by suspended Columbia University students Chungin "Roy" Lee and Neel Shanmugam, the startup has drawn attention for its AI cheating tools and controversial marketing campaigns.

Cluely's core product is a "cheat on everything" AI assistant that operates discreetly in the background, analysing live audio and on-screen content to provide real-time support during professional scenarios like meetings and customer calls. 

In its official announcement, lead investor a16z praised the startup's approach: "What if breaking the rules was the unlock?" The venture firm noted Cluely's rapid traction in enterprise sales environments and early "meaningful consumer subscription revenue."

The founders, both 21, were suspended from Columbia for developing 'Interview Coder' - an AI tool designed to help coders during technical interviews. A report by TechCrunch states that Lee's controversial marketing tactics, including a viral video demonstrating how the AI could deceive a date about personal details, have fueled both the company's growth and criticism.

Despite the controversies, a16z sees potential in what it describes as Cluely's "proactive, multimodal AI assistants", differentiating them from conventional note-taking applications. The startup claims to be profitable already, supported by a seven-person growth team whose members each maintain personal social media followings exceeding 100,000.

Cluely's previous $5.3 million seed round was co-led by Abstract Ventures and Susa Ventures. As the company scales, industry observers question whether its disruptive approach will lead to sustainable enterprise adoption or remain overshadowed by its attention-grabbing launch strategy.