New York City

Former Columbia Student Suspended for AI Tool Sparks Debate and Success with $5.3M Startup

AI Assisted Icon
Published on May 05, 2025
Former Columbia Student Suspended for AI Tool Sparks Debate and Success with $5.3M StartupSource: Unsplash/ Igor Omilaev

Roy Lee, a 21-year-old former Columbia University student suspended for creating an AI-based tool designed to give job applicants an edge in coding interviews, has pivoted his controversial project into a successful startup. His company, now known as Cluely, has raised $5.3 million in funding. After his suspension, Lee and his co-founder Neel Shanmugam chose to drop out of Columbia and focus full-time on the development of their AI tool which has now expanded beyond coding interviews to assist in various real-time virtual interactions. Gothamist reported this past Sunday that Cluely's "cheat on everything" marketing angle is, according to Lee, more provocative than literal. "You can't really cheat on a conversation," he said in a phone interview.

Columbia's suspension of Lee came after a video surfaced showing how their AI tool, initially called Interview Coder, could help secure internship offers from tech companies like Meta and Amazon. The video attracted attention, particularly after Amazon raised concerns with the university, leading to Lee facing disciplinary action. Despite the controversy, Lee's vision remains unchanged, with Cluely offering a real-time AI assistant for a $20 monthly subscription that provides users with prompts and analysis during virtual conversations. While Amazon's complaint played a role in his suspension, the company positions the tool as similar to calculators or spellcheck—once criticized but now widely accepted as tools that enhance task efficiency, as highlighted in a statement reported by Hindustan Times.

Cluely's growth speaks to a broader discussion about the impact of generative AI on work, learning, and communication. Academic institutions are now challenged to address the implications of this new technology. Columbia itself has a 2,800 word AI policy under development, encouraging exploration while setting boundaries on AI’s use in exams or assignments without permission. Lee believes his former university missed an opportunity to lead in AI integration, "It’s crazy to me that they’re not the first people to openly embrace the use of AI," he argued, suggesting the mishandling of his situation by Columbia deprived students of essential preparation for a future where AI plays a significant role, according to his interview with Gothamist.

Cluely's approach to hiring even includes AI-proof interviews. Lee encourages candidates to use any AI tools they find helpful and openly discuss their process. "It's very simple to vibe check if someone knows what they're doing or is just mindlessly prompting," Lee told in the interview with Gothamist, indicating that Cluely seeks candidates who can demonstrate understanding beyond mere reliance on AI.

This comes at a time when academia is actively dealing with how to incorporate AI into the classroom effectively. Professors like Ross Aikins of the University of Pennsylvania and Anand Rao from the University of Mary Washington advocate for integrating AI in pedagogy, with Rao developing a curriculum focused on responsible AI use and Aikins emphasizing the need for universities to evolve. These educators are part of a growing consensus that views AI skills as necessary for future careers, standing in sharp contrast to Columbia's more cautious stance. Considering their efforts in harnessing AI for educational purposes, they are highlighting the complexities of this emerging technology and its role in academia, as reported by Gothamist.