Phoebe Gates enrolled in a hidden winter-quarter class at Stanford University that taught students how to manipulate power structures. After completing the course, she co-founded the AI-driven fashion shopping assistant Phia. The startup is now accused of using illegal cookie-stuffing techniques that could expose its founders to criminal liability.
Secret Stanford class
The ten-week, off-the-record course was titled "So You Think You Can Rule the World?" and required a referral from an existing student. It was not listed in the official registration system and admitted only twelve participants each quarter. The professor, Justin Lewis-Weber, a 2020 Stanford graduate, designed the curriculum around prisoner's dilemmas, multipolar traps and readings by Peter Thiel and Paul Graham.
According to a former student who asked to remain anonymous, the class taught participants how to "hack any kind of power structure or bureaucratic structure and get what they want in a system of people". The programme has been described as a secret society for aspiring tech elites.
Building Phia
Using the network formed in the class, Gates recruited fellow students to join her venture. She and her roommate Sophia Kianni launched Phia from a Stanford dorm room in April 2025. The app promised to automate fashion shopping by comparing prices and completing purchases instantly.
"We wanted to create something that could do all of our shopping for us," Kianni said.
Phia raised $8 million in seed funding later that year, with investors such as Kris Jenner, Hailey Bieber, Sheryl Sandberg and Sara Blakely. A $35 million Series A round in January 2026 brought the company's valuation to roughly $185 million.
Allegations of cookie stuffing
A Bloomberg investigation found that more than half of Phia's revenue in June came from cookie-stuffing, an illegal practice that places tracking codes on users' devices without consent. The technique allows a company to claim affiliate commissions for sales it did not facilitate, violating Google's Chrome Extension policy and potentially carrying severe penalties.
A Phia spokesperson told EuroHerald that any features causing misattributions were removed on 7 July and that the firm was reviewing all transactions and hiring a head of compliance.
Internal Slack messages obtained by Bloomberg suggest the founders were aware of the practice as early as December. In a December 18 message, Gates wrote, "Can u confirm auto pop for cookie drop is live on ALL sites w a coupon to confirm we are monetising on all gross merchandise volume". Kianni replied, "Whatever we can do to keep these cookies dropping will be amazing, thank you".
Potential repercussions
If investigators determine that Gates and Kianni knowingly permitted the scheme for at least seven months, prosecutors could pursue criminal charges. Beyond possible prison sentences, the scandal is likely to damage Phia's reputation, deter investors and trigger regulatory scrutiny across the EU's digital-services framework.
The case highlights the risks of rapid-growth tech ventures that rely on opaque recruitment networks and aggressive monetisation tactics. Stakeholders will be watching how authorities in the United States and Europe respond to the allegations and whether Phia can restore trust with consumers and partners.