Cluely raises $5.3M amid debate over undetectable AI cheating tool

On May 2, 2025, the podcast episode titled “Damn, the Cluely ragebait got us” discussed the AI startup Cluely. The startup created an AI browser overlay to assist users during job interviews and exams by providing real-time responses. Based in the U.S., the discussion featured hosts Kirsten Korosec, Max Zeff, and Anthony Ha. Cluely’s tool is claimed to be undetectable, causing ethical concerns about AI misuse. The company secured $5.3 million in funding despite controversy.

What Cluely Developed

Cluely built a browser overlay that gives users real-time help in interviews and exams. The company argues the tool cannot be detected by others. This has raised debates on whether such AI use crosses ethical boundaries in work and education.

Facing criticism, Cluely plans to explore other delivery methods, including smart glasses or brain chips. This would allow continued assistance beyond the browser.

Key Stakeholders and Reactions

• Cluely: The AI startup behind the overlay technology.
• Podcast Hosts: Kirsten Korosec, Maxwell Zeff, and Anthony Ha, who analyzed the product and its impact.
• Investors: Contributors to Cluely’s $5.3 million funding round.
• Competitors: Startups creating tools to detect cheating, which may be challenged by Cluely’s AI.

Significance and Implications

Cluely’s product shakes the foundation of trust in hiring and academic testing. It questions the ethical use of AI in professional settings. The significant investment highlights investor confidence in this controversial technology.

Additionally, startups focusing on cheating detection face potential disruption due to Cluely’s undetectable approach. The podcast episode explored these wider effects on the future of work in the AI age.

Discussion and Context

The podcast, produced in the U.S., delved into controversies and broader AI ethical concerns. For more insights, listeners can find the full episode available on platforms such as Spotify and Apple Podcasts.

The episode also covered other AI topics, reflecting the rapidly evolving landscape of artificial intelligence in business and technology.