AI Startup Cluely's Viral Party Shutdown: When 'Cheat at Everything' Meets San Francisco's Tech Scene

Police shut down Cluely's party, the 'cheat at everything' startup | TechCrunch

The latest San Francisco startup culture drama happened on Monday night. And it centered around "the most legendary party that never happened," Cluely founder and CEO Roy Lee tells TechCrunch. Cluely had hoped to throw an afterparty for a Y Combinator event occurring on Monday and Tuesday called AI Startup School. The event drew crowds thanks to scheduled speakers like Sam Altman, Satya Nadella, and Elon Musk. Cluely is an AI startup born of controversy and rage-bait comedy marketing. True to form, Lee posted a satirical video on X advertising his afterparty. It shows him camped out by the famed Y Combinator sign -- the one all the YC founders take selfies with. (Cluely is not a YC startup.) The tweet advertised the party to his more than 100,000 followers and said to DM for an invite. Lee tells TechCrunch that he didn't actually send invites out to the hordes. "We only invited friends and friends of friends," he said. But it became the party, and people shared the details. When it was set to begin, so many people were standing outside the venue that the lines wrapped around blocks. "It just blew up way out of proportion," Lee says. What looked like 2,000 people showed up, he added. A party that big might have gotten out of control, but it didn't get the chance. The lines were blocking traffic, so the cops showed up and shut it down. "Cluely's aura is just too strong!" Lee was heard shouting outside as the cops busted it up. "It would have been the most legendary party in tech history. And I would argue that the reputation of this story might just make it the most legendary party that never happened," Lee tells TechCrunch, simultaneously proud and bummed. Lee became known in San Francisco when he posted a viral tweet on X saying he was suspended by Columbia University after he and his co-founder developed an AI tool to cheat on job interviews for software engineers. They turned that tool into a startup that offers a hidden in-browser window that can't be viewed by an interviewer or proctor. The startup also went viral for its marketing that promised to help people "cheat on everything." In April, Cluely raised a $5.3 million seed round, and its marketing is now a little less in-your-face: "Everything you need. Before you ask." The party and its law-enforcement demise naturally became the subject of jokes, memes and inventive rumors. Lee's explanation of the crowds outside is perhaps more dull than what some people imagined. After the cops showed, "We did some cleanup, but the drinks are all there waiting for the next party," he promises.

Police Shut Down AI Startup's Party as CEO Screams That "Aura Is Just Too Strong!"

One of the Ivy League dropouts behind a buzzy AI "cheating" app tried to host an illegal party outside the offices of San Francisco's storied Y Combinator -- and the stunt got the attention of the fuzz. As TechCrunch reports, the "cheat on everything" app Cluely, which is not funded by Y Combinator, drew massive crowds outside of the incubator's bayside offices following the institution's star-studded "AI Startup School" event earlier this month. "We only invited friends and friends of friends," insisted Roy Lee, one of Cluely's mischievous young cofounders, in an interview with the website. "It just blew up way out of proportion." Still, Lee said his Monday night shindig would have been "legendary" had SFPD not shown up to the scene to disperse the crowd that had at that point stretched around the block and blocked traffic. As the cops busted up the party, the 21-year-old tech founder was heard shouting "Cluely's aura is just too strong," TechCrunch notes. Over the course of this year, Lee and his friend and fellow cofounder Neel Shanmugam have, it seems, done a lot of "legendary" stuff. After making waves online with their "undetectable" AI that could trick LeetCode -- the notoriously difficult software that many tech companies use in interviews with prospective engineers -- the pair officially launched the app under the name "Interview Coder" back in February. The computer science undergrads presumed what they were doing was acceptable under Columbia's student handbook, but as they soon discovered, it very much was not. In response to school suspensions, the pair decided to drop out to pursue "cheating" full-time. Not long after their grand exit, the boys and their app, which they renamed to "Cluely," got the attention of Andreessen Horowitz and other investors who helped them raise a cool $15 million for their app, which claims it can help you cheat your way through life by seeing everything you do on your smartphone and offering suggestions along the way. In the months since, the Cluely crew apparently gained something of a reputation after selling $100 boxes of condoms that said "F*ck Leetcode" -- a viral marketing scheme that seems to have given them a taste for notoriety. Months away from the app's humble beginnings, however, Lee waxed regretful about what could have been. "It would have been the most legendary party in tech history," he told TechCrunch. "And I would argue that the reputation of this story might just make it the most legendary party that never happened."

'The Greatest Party That Never Was' -- Police Shutdown Bash Hosted By 'Cheat On Everything' AI Tool Cluely

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Cluely, the controversial AI startup known for marketing itself as a tool to "cheat on everything," had its latest stunt shut down by San Francisco police before it could even start. What Happened: On Monday night, Cluely CEO Roy Lee attempted to host an after-party for attendees of Y Combinator's AI Startup School, which featured tech heavyweights like Sam Altman, Satya Nadella and Elon Musk, reported TechCrunch. Although Cluely is not affiliated with YC, Lee promoted the party on X to his 100,000 followers, saying to DM him for invites. "We only invited friends and friends of friends," Lee told the publication, adding that despite this "it just blew up way out of proportion." See Also: Mark Zuckerberg's Meta Dangled '$100 Million Signing Bonuses' To OpenAI Team Members, Says Sam Altman: Happy 'None' Of Our Best People Took Them According to Lee, over 2,000 people showed up, crowding the streets and blocking traffic. Police responded by shutting the event down before it began. "Cluely's aura is just too strong!" Lee was heard shouting outside as the party dissolved. Lee told the outlet that it had the potential to be the most iconic party in tech history -- and perhaps, thanks to the story's lasting buzz, it has become "the most legendary party" that never actually took place. Taking to social media he posted, "Hosted the greatest party that never was." Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It's Important: Lee first gained local notoriety in San Francisco after a tweet of his went viral on X: he claimed Columbia University had suspended him and his co‑founder for building an AI tool that could game software‑engineering job interviews, the report said. The pair then spun that tool into a startup that runs a discreet browser window invisible to interviewers or proctors. Their marketing -- initially infamous for the slogan "cheat on everything" -- quickly caught fire online. In April, the company, now called Cluely, secured a $5.3 million seed round, and its tagline has softened to: "Everything you need. Before you ask," the report added. Photo Courtesy: Melinda Nagy on Shutterstock.com Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Iran Says WhatsApp A Tool For Israeli Surveillance -- Meta Hits Back, Calling It 'False Reports' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs