Phoebe Gates' AI Shopping App Under Fire

Phoebe Gates, daughter of Microsoft co-founder Bill Gates, co-founded Phia, an AI-powered shopping app and browser extension. Launched in April 2025, Phia aims to help shoppers compare prices on clothing and accessories. The company rapidly secured significant investment, receiving $35 million in funding last January, which valued it at $185 million just one year after its inception.

Phia's success has been accompanied by controversy. Several influencers have publicly accused Gates of attempting to "lowball" them on rates for paid social media content. These accusations have led to backlash online, with creators citing a disconnect between Gates' privileged background and her negotiation tactics.

Gates has stated her determination to succeed independently, emphasizing that she has not received funding from her parents for Phia. Despite her efforts to build the company without leveraging her family name, industry insiders suggest that acknowledging her background might benefit business perceptions.

Phia's business model has been compared to existing fashion shopping platforms like Lyst and ModaSENS. The app's promotional strategies, including outreach from Gates' personal social media, have also drawn criticism for potentially blurring the lines between personal privilege and business operations.

Despite the criticisms, Phia has garnered attention, including being named one of TIME's Best Inventions of 2025. Celebrity investors like Kris Jenner and Hailey Bieber have also backed the company. The app's future success will likely hinge on its ability to build authentic customer connections.