Phoebe Gates' secret Stanford class spurs startup launch and later fraud allegations

During her undergraduate years in human biology, Phoebe Gates enrolled in a secretive Stanford winter-quarter class titled “So You Think You Can Rule the World?” which required a peer referral and was not listed in the official catalog. The course, led by alumnus Justin Lewis-Weber, focused on game-theoretic dilemmas and readings from Peter Thiel and Paul Graham, aiming to teach students how to navigate and manipulate bureaucratic systems.

Gates used the contacts she made there to assemble a team for Phia, an AI personal shopping app co-founded with roommate Sophia Kianni and launched from a dorm room in 2025. After raising seed and Series A funding and reaching a valuation near $185 million, Phia was reported to have engaged in cookie-stuffing, a prohibited practice that accounted for a large share of its June revenue. Internal Slack excerpts suggest the founders were aware of the issue months earlier, though the company claims the offending feature was removed on July 7 and that it is reviewing transactions and hiring compliance staff. The controversy could lead to legal scrutiny and damage the startup’s reputation.