Phoebe Gates reportedly raises millions for AI startup without parental backing

Phoebe Gates, the youngest daughter of Microsoft co-founder Bill Gates and philanthropist Melinda French Gates, is reportedly launching an artificial intelligence startup without financial support from her billionaire parents.

The startup, called Phia, was first launched in April 2025 in the United States, which utilises artificial intelligence for online shopping. According to reports, the company is led by Phoebe Gates and her Stanford University co-founder, Sophia Kianni, with the goal of scaling into a future unicorn.

According to reports, Phia has recently closed a $35 million Series A funding round led by Notable Capital. This investment gives the company a valuation of approximately $185 million and a total of over $43 million in capital raised. Phia also recently reached one million users, which is a great sign of early success in the competitive AI commerce market.

The app compares prices of clothing from over 40,000 websites using artificial intelligence. It helps users in getting the best prices in real time. According to sources, Phia first started off as a browser extension but performed poorly, causing the developers to recreate it as a mobile app.

Despite her background, Phoebe Gates has reportedly avoided financial support from her parents. Gates has previously said this approach was “lucky”, noting that parental involvement could complicate business decisions.

Melinda French Gates has also reportedly said she did not invest in the startup, stressing the importance of learning to raise capital independently.

Phia’s initial reported funding came from a university professor and then the Soma Fellowship. Since then, the company has attracted big-name investors such as Kris Jenner, Sara Blakely, Hailey Bieber, Kleiner Perkins, and entrepreneur Michael Rubin.