The Silicon Valley’s Cluely, a newly launched AI startup, has seen its revenue soar to about $7 million in annual recurring revenue (ARR) just weeks after launching its enterprise product.
Roy Lee, Cluely’s founder, disclosed that there has been a rising adoption of the platform, mainly by individuals preparing for meetings and interviews. The platform leverages AI to track online conversations, assisting users with real-time notes, helpful context, and question hints, all discreetly provided on the user’s screen without drawing attention.
This special functionality has positioned the product as a game-changer in the virtual meeting and productivity space.
Just weeks earlier, Mr. Lee had already boasted about achieving profitability with more than $3 million in ARR, attributing the success to strong demand from both individual users and business giants like Andreessen Horowitz, Abstract Ventures, and Susa Ventures.
What is Cluely?
Cluely is a newly launched AI startup designed to function as an “undetected personal AI assistant.” It quietly observes the screen and audio during meetings, calls, interviews, or even exams, then provides real‑time notes, contextual guidance, and suggested prompts directly on the user’s display.
Based in Silicon Valley, Northern California, specifically in the southern part of the San Francisco Bay Area, Cluely was founded by Roy (Chungin) Lee and Neel Shanmugam, who were famously suspended from Columbia University over a prototype cheating tool.
Cluely was originally pitched with the cheeky slogan, “Cheat on everything.” Although it has since softened its messaging, its DNA remains rooted in giving users an unfair advantage, a narrative that quickly captured public attention.
How Did It Emerge?
Cluely was born out of a controversial incident involving a university suspension. The founder, Lee, disclosed in an X post how he was suspended by Columbia University authorities for creating a cheating tool designed for software engineering interviews.
However, rather than abandon the project, Roy Lee chose to commercialize the technology, launching Cluely with the edgy initial tagline: “Cheat on everything.”
Why It Matters
What began as a controversial tool has now become a startup backed by major venture firms, and surprisingly, it’s generating revenue worth talking about.
Despite the ethical concerns surrounding its creation, existence, and use, Cluely continues to gain traction, even among large enterprises. One unnamed public company reportedly doubled its contract with Cluely to $2.5 million in just one week, showing strong confidence in the product’s utility and reliability.
Notably, the enterprise version of Cluely includes additional features such as team collaboration tools and enhanced security, expanding its relevance across sectors like customer service, sales, and online tutoring. Still, its real-time note-taking feature remains the standout attraction for users.
Cluely’s Operations and Ethical Concerns
Experts are concerned that Cluely’s operations raise serious ethical questions, particularly around integrity, fairness, and the potential erosion of personal accountability. Although, the startup markets itself as a productivity tool, its core functionality, providing undetectable assistance during interviews, meetings, or even exams, blurs the line between support and dishonesty.
It enables users to gain an unfair advantage by discreetly feeding them information in real time. In academic and professional contexts, this can easily constitute cheating. It undermines merit-based systems and threatens the credibility of evaluations, interviews, and learning processes.
The fact that its founders previously faced disciplinary action for a similar tool only underscores the ethical gray area in which the company operates. The normalization of such tools risks cultivating a generation of users who rely on AI to think, respond, or perform under false pretenses.
Talking Point
The emergence of various AI startup products is indeed commendable. They are proof to high-level intellectual evolution and a vibrant driving force in the global market.
That said, it is crucial to pay closer attention to these tools and the services they offer, particularly the potential harm AI assistantships can pose to human intellect when unethically exploited.
Categorically, Cluely and similar AI startups offering “cheating” services deserve heightened scrutiny from both users and regulatory authorities. Cheating, which has historically been condemned across all cultures, is now being democratized as normal, raising critical questions such as:
- What will happen to intellectual standards when products like Silicon Valley’s Cluely, Pickle’s Glass and more become widely accessible?
- What about trust and fairness in interviews, learning, and other academic and professional purposes when these AI assistantships can be freely used or cheaply acquired?
In a nutshell, heavy dependence on such services will undoubtedly lead to a substandard workforce in the coming years if stricter regulatory actions are not taken when most necessary.
