Good morning, tech enthusiasts. Chungin “Roy” Lee, the 21-year-old co-founder of Cluely, just announced that his startup has raised $5.3M for its controversial AI tool to “cheat on everything.”

Cluely, which also dropped a clip showing Lee using the tech to impress a date, argues that AI cheating tools will become as accepted as calculators and spellcheckers. Is this the natural evolution of human-AI collaboration, or are we living in an episode of Black Mirror? 

In today’s tech rundown:

• Cluely raises $5.3M to ‘cheat on everything’

• Netflix eyes video podcasts in next big move

• FTC sues Uber for ‘deceptive’ practices

• Airbnb to display full prices up front

• Quick hits on other major news

LATEST DEVELOPMENTS

CLUELY

 🤥 Cluely raises $5.3M to ‘cheat on everything’

Image source: Cluely/X

The Rundown: On Sunday, 21-year-old Chungin “Roy” Lee announced that his startup, Cluely, has raised $5.3M in seed funding to expand its controversial AI tool designed to cheat on everything from job interviews to exams.

The details:

• The tool operates via a hidden, undetectable in-browser window that provides users with real-time answers and suggestions during interviews or calls.

• It “listens” to audio, “sees” the user’s screen, and delivers instant answers invisible to interviewers or anyone else on the other end.

• Lee, a former Columbia University student, was suspended after he co-created an earlier version of the tool for software engineer job interviews.

• The controversy around “AI cheating” has only fueled Cluely’s growth: the startup launched this month and already boasts $3M+ in annual revenue.

Why it matters: Investors have flocked to the startup despite concerns from recruiters and tech giants like Amazon. But Cluely isn’t the only polarizing new AI startup: Famed AI researcher Tamay Besiroglu has also launched his own startup, Mechanize, with a mission to replace all human workers everywhere with AI.

NETFLIX

🎤 Netflix eyes video podcasts in next big move

Image source: Ideogram/The Rundown

The Rundown: Netflix is reportedly gearing up to expand beyond TV and film, with video podcasts emerging as its next big content play—a strategic move to challenge YouTube’s dominance in the space.

The details:

• Co-CEO Ted Sarandos said last week that “as the popularity of video podcasts grows, I suspect you’ll see some of them find their way to Netflix.”

• According to Edison Podcast Metrics, YouTube attracts 31% of weekly podcast listeners, compared to Spotify’s 27% and Apple’s 15%.

• Nearly half of podcast listeners watch their shows on smart TVs, and in March, YouTube made up 9.7% of all TV viewing, compared to Netflix’s 8.1%.

• Netflix has already dabbled in podcast-adjacent and creator-driven content, licensing a few shows and producing podcasts tied to its original series.

Why it matters: Netflix’s push into video podcasts is fueled in part by their lower production costs compared to scripted shows and films. With Gen Z increasingly tuning into podcasts in video format, the company is now reportedly stepping up efforts to woo creators and stake its claim in this growing trend.

UBER

⚖️ FTC sues Uber for ‘deceptive’ practices

Image source: Ideogram/The Rundown

The Rundown: Uber is facing a lawsuit from the U.S. Federal Trade Commission (FTC) over allegations of deceptive billing and cancellation practices tied to its monthly Uber One subscription service.

The details:

• The FTC claims that Uber enrolled customers on Uber One without their explicit consent and then made it extremely difficult to end the subscription.

• According to the complaint, the ride-hailing giant promised savings of $25 a month, but this figure did not account for the $9.99 monthly subscription cost.

• Plus, it made cancelling the subscription “unreasonably” burdensome for users, requiring them to navigate up to 23 screens.

• The commission also alleges that users were billed before their free trial ended, with some asked to contact customer support with no further instructions.

Why it matters: Uber has denied all allegations, asserting that its sign-up and cancellation processes are streamlined, with app cancellations taking just 20 seconds. Nevertheless, the move comes amid a broader FTC crackdown on “dark patterns” that make it hard for users to cancel, targeting giants like Amazon, Adobe, and Match.

AIRBNB

🏠 Airbnb to display full prices up front

Image source: Ideogram/The Rundown

The Rundown: Airbnb has responded to major pushback from both consumers and regulators by introducing a major update to its pricing transparency, now displaying the total price, including all fees, by default to users during the booking process.

The details:

• Airbnb said it will now display the total price of a stay, including all service charges, cleaning, and additional fees, by default before taxes.

• The guest service fee can be up to 14.2% of the booking subtotal, while cleaning and other maintenance fees set by hosts will also go in the total price.

• The change comes ahead of new U.S. federal regulations targeting so-called “junk fees,” set to take effect on May 12.

• This move will help travelers make more informed decisions and avoid sticker shock at checkout.

Why it matters: Airbnb has been testing this feature since 2019 in various countries and now plans to bring it worldwide as U.S. regulations tighten. For Airbnb hosts, however, this change may require more strategic pricing, but Airbnb plans to show hosts how much their guests are paying before taxes to help make adjustments.

QUICK HITS

📰 Everything else in tech today

Nintendo announced that it opened Switch 2 pre-orders in the U.S. and that its planned price of $499.99 will remain intact despite tariff concerns.

Instagram is intensifying its efforts to clamp down on teenagers who misrepresent their age by using AI tools to scan accounts for clues indicating that the user is a minor.

Apple has reportedly been assembling its iPhone 16e in Brazil (since the phone launched) as it moves production out of China amid the ongoing tariff war.

Tesla investors are pushing for updates from CEO Elon Musk on the launch timelines of Tesla’s long-promised affordable EV and its robotaxi service in Austin.

The U.S. government has cancelled or downsized $8B worth of clean energy projects since January, according to a report from nonpartisan think tank E2.

China's CATL launched Naxtra, a new brand for its sodium-ion batteries, and the second generation of its fast-charging battery for electric cars.

Bluesky launched its own blue checkmark verification system similar to X, but one that allows “trusted verifiers” to distribute the checks

Car rental company Hertz partnered with AI vehicle-inspection service UVeye to scan airport returns for damage and maintenance issues.

Manychat, a startup that provides brands with AI tools for automated messaging and chats across social media, raised $140M in funding.

Jeff Bezos-backed Slate Auto reportedly teased its secretive EV concept on the streets of California with a “Transformer-like design.”

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Rowan, Jennifer, and Joey—The Rundown’s editorial team