NEW YORK, NY — A group of Columbia University students, previously suspended for developing an artificial intelligence tool accused of facilitating academic dishonesty, has now secured $5.3 million in seed funding for their controversial startup, Cluely. The unexpected pivot from campus pariahs to tech entrepreneurs has sparked debates about innovation, ethics, and the blurred lines between cheating and educational technology.
The saga began last fall when Columbia administrators discovered an AI-powered platform named “StudyGenius,” designed to generate essay outlines, solve complex problem sets, and even mimic students’ writing styles. While the creators initially marketed it as a study aid, professors flagged its potential for abuse, leading to the suspension of four undergraduates involved. University officials called it “one of the most sophisticated cheating tools ever encountered.”
Undeterred, the expelled students rebranded their project as Cluely, reframing its mission to “democratize learning through ethical AI.” The platform now emphasizes collaboration, offering features like real-time homework assistance, plagiarism detection, and personalized feedback. Investors, including prominent Silicon Valley venture firms, have eagerly backed the vision, with the $5.3 million round led by EdTech Ventures.
In a public manifesto released last week, the Cluely team defended their journey: “Education systems punish experimentation, but innovation thrives where rules are challenged. We’re not promoting cheating—we’re rebuilding how students learn.” Critics, however, remain skeptical. Dr. Helen Torres, an academic integrity researcher, argues, “The core technology hasn’t changed. This is monetizing a loophole.”
The controversy has gone viral, fueled by co-founder Roy Lee’s tweet stating, “Got suspended for ‘cheating.’ Now we’re cheating the system to fix education.” His LinkedIn post, which details the team’s “fall and rise,” has garnered over 500,000 views, with reactions split between admiration and outrage.
Columbia University declined to comment on the funding but reiterated its stance against “tools undermining academic rigor.” Meanwhile, Cluely’s user base has surged, with 40,000 students signing up since its relaunch. The startup plans to expand its AI tutor features and partner with K-12 schools.
As debates over AI in education intensify, Cluely’s story raises a pressing question: When does a cheating tool become a disruptive innovation? For now, these former students are betting millions that their answer is the right one.
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