Phoebe Gates, the daughter of Microsoft co-founder Bill Gates, has broken her silence after her AI-driven shopping startup, Phia, came under scrutiny following a Bloomberg investigation into the way its browser extension tracked online purchases and attributed affiliate commissions.The 23-year-old entrepreneur, who co-founded Phia with her former Stanford University roommate Sophia Kianni, said the issue was quickly identified and fixed after it was brought to the company’s attention.“Within the last 24 hours, we were made aware that in a recent release our codebase was causing misattributions from a subset of users,” a Phia spokesperson told Bloomberg. “As soon as we were notified, our team worked overnight to identify, mitigate, and has since resolved the issue.”The company added that the problematic code had been introduced in December and said it is regularly audited by its affiliate network partners and has “always maintained compliance.”
Bloomberg investigation puts Phia under the spotlight
The controversy began after Bloomberg reported that Phia’s browser extension appeared to claim commissions on online purchases it had not directly influenced—a practice known in the affiliate marketing industry as “cookie stuffing.”The publication tested the extension across more than 50 websites and cited findings from affiliate marketing researcher Ben Edelman and rival browser extension Capital One Shopping.“The most fundamental requirement in affiliate marketing is that commission is only paid if a user clicks,” Edelman told Bloomberg. “The rules don’t allow fake clicks, simulated clicks, imaginary clicks or hypothetical clicks. Only a real click will do.”Following the report, affiliate network Impact. com suspended Phia’s account, saying the extension’s behaviour violated its policies. Bloomberg later retested the extension after the company implemented a fix and reported that the misattribution issue had been resolved.
‘I want to build something with no ties to my last name’
As questions swirled around the startup, Gates reiterated that she wants Phia to earn its success on its own merits, not because she is Bill Gates’ daughter.Speaking on Yahoo Finance’s Opening Bid Unfiltered podcast, she said, “My primary motivation is to build something generational that has no ties to my privilege or my last name.”Gates admitted she feels the pressure of living up to one of the biggest names in technology.“I have a chip on my shoulder,” she said, adding that her goal is “not only proving myself, but building something novel and unique that consumers actually love.”She also revealed that neither Microsoft co-founder Bill Gates nor philanthropist Melinda French Gates has invested in the business. Instead, the company has raised money entirely from outside investors.
Phia is now valued at around $185 million
Founded in 2025, Phia is an AI-powered shopping assistant designed to make online shopping easier. The browser extension compares prices across retail and resale platforms, helps shoppers find better deals and automatically applies discount codes at checkout.The startup has attracted strong investor interest amid the AI boom. It recently raised $35 million in a Series A funding round, taking its valuation to approximately $185 million.To date, Phia has raised more than $43 million from investors including Notable Capital, Kleiner Perkins and Khosla Ventures, while celebrity backers such as Sydney Sweeney, Khloé Kardashian and Hailey Bieber have also invested in the company.According to Bloomberg, citing Appfigures estimates, the app has been downloaded more than 1.2 million times over the past year as consumers increasingly turn to AI-powered tools to simplify online shopping.Although her parents haven’t invested financially, Gates said they have offered advice on leadership, company culture and building strong teams.As competition in AI-powered commerce intensifies, Gates says Phia’s future will ultimately depend on execution and innovation, not on her family’s wealth or one of the world’s most recognisable surnames.