Phoebe Gates, daughter of Bill Gates, has raised over $43 million for her AI shopping startup Phia, now valued at around $185 million. The 23-year-old co-founded the company with Stanford roommate Sophia Kianni, creating a browser extension that compares prices across thousands of retail and resale sites. Gates insists on building the venture without family money, raising outside capital despite investor scrutiny. Recent funding of $35 million was led by Notable Capital, with participation from Kleiner Perkins and Khosla Ventures. However, Bloomberg reported this week that Phia's extension allegedly engaged in "cookie stuffing" — claiming credit for sales it didn't drive by injecting its own referral codes during checkout. A company spokesperson said the issue stemmed from a recent code release and has been fixed. Gates says she wants to prove herself based on merit, not her surname.

Phia accused of 'cookie stuffing,' taking affiliate credit on purchases it didn't earn. Phia, the shopping startup co-founded by Bill Gates' daughter, Phoebe Gates, and Sophia Kianni, has been accused of a practice known as "cookie stuffing," which may have helped the product receive commissions and credit for sales it did not actually generate, according to a Bloomberg investigation. The report has sparked controversy and led to Phia's suspension from Impact.com, a leading affiliate and influencer platform. Other startups have been sued over "cookie stuffing," notably Honey, which is owned by PayPal and remains the subject of an ongoing class action lawsuit. Founded in 2025, Phia has raised more than $40 million in funding and has a star-studded list of investors, including Khloé Kardashian and Hailey Bieber. The startup developed an app as a browser extension that works somewhat like Google Flights, but for shopping. Phia helps customers find the lowest-priced items across various retailers as well as discount codes to use when shopping. The company takes a commission on purchases made through the platform, an industry practice known as affiliate marketing. The Bloomberg investigation, as well as findings from an independent consultant and a competitor, found that if a user shopped at an online retailer - even if they arrived at the site on their own or through another affiliate program like Wirecutter - Phia would open a new tab in the background. During the checkout process, Phia would override the referral codes from other affiliates and instead inject its own, allowing it to take credit for and potentially receive a commission on a purchase it didn't earn. Once the issue was flagged to Phia, a spokesperson told Bloomberg that all necessary changes had been made to fix the issue. A check by Bloomberg found the issue had been resolved. It's unclear if the fix is enough to satisfy the retailers and affiliate partners that work with Phia. TechCrunch reached out to Phia for comment and has not received a response. Build Mode: Inside the Fundraise 0 seconds of 52 seconds Volume 0% November 4 Last chance to save up to $190 on TechCrunch Founder Summit. Join 1,000+ founders and VCs at all stages for real-world scaling insights and connections that move the needle. Savings end June 26, 11:59 p.m. PT.