Bill Gates’ Daughter’s AI Shopping App Accused of Diverting Publishers’ Affiliate Commissions

Phia, the AI-powered shopping startup co-founded by Bill Gates’ daughter Phoebe Gates, redirected affiliate commissions away from publishers during some online purchases by reassigning referral credit at checkout, according to testing conducted by Bloomberg and affiliate marketing researcher Ben Edelman.

The investigation found that Phia’s browser extension opened hidden browser tabs immediately before certain purchases were completed, allowing the company to claim affiliate attribution even when shoppers had reached a retailer through another publisher’s referral link. Phia told Bloomberg the behavior stemmed from a software bug introduced in December and said it removed the affected code within 24 hours after the company was contacted.

The findings raise questions about how AI-powered shopping assistants interact with affiliate marketing systems that help fund publishers, review sites, and online creators.

Bloomberg tested Phia across more than 50 retailers, including Walmart, Nike, and Zara, alongside rival browser extension Capital One Shopping. Working with Edelman, who has researched affiliate marketing practices for years, Bloomberg observed Phia briefly opening a hidden browser tab before checkout. The tab loaded an affiliate tracking link before closing automatically, reassigning referral credit to Phia.

One example illustrated how the process worked. After a shopper clicked a Wirecutter product recommendation and proceeded to purchase an item from Nordstrom, Bloomberg reported that Phia replaced Wirecutter’s affiliate attribution just before the transaction was completed, causing the referral commission to be credited to Phia instead.

Phia Says a Software Bug Caused the Issue

Phia denied intentionally redirecting affiliate commissions.

The company said the issue resulted from a software bug introduced in a December software update that affected fewer than 0.001% of shopping sessions. It said the code was removed within a day after Bloomberg raised questions and that affiliate networks later reversed the affected transactions, meaning the company did not retain the disputed commissions.

Bloomberg also reported that affiliate marketing platform Impact.com suspended Phia’s account while reviewing historical activity associated with the browser extension.

Founded in 2024 by Phoebe Gates and climate activist Sophia Kianni, Phia markets itself as an AI shopping assistant that compares prices across retailers and resale marketplaces to help consumers find lower prices and secondhand alternatives. The company has described the product as “Google Flights for fashion.”

The startup has raised $43.5 million through seed and Series A funding rounds led by Kleiner Perkins, Khosla Ventures, and Notable Capital. Its investor roster also includes celebrities and business leaders such as Sydney Sweeney, Paris Hilton, Khloé Kardashian, Jessica Alba, Karlie Kloss, Hailey Bieber, Kris Jenner, and LVMH executive Alexandre Arnault.

Affiliate Attribution Has Become a Growing Battleground

Affiliate marketing underpins much of the online commerce ecosystem. Publishers, review sites, and creators earn referral commissions when shoppers complete purchases after clicking their links, making accurate attribution central to how revenue is distributed across the web.

The issue has surfaced elsewhere in the industry. PayPal’s Honey browser extension continues to face litigation over allegations involving affiliate attribution, while Phia previously addressed concerns raised by security researchers over how an earlier version of its browser extension handled browsing data. The company said it updated the software after those findings.

Impact.com told Bloomberg it is reviewing Phia’s historical activity while the company maintains the affiliate attribution issue resulted from a software bug that has since been corrected.

As AI-powered shopping assistants become more widely used, the findings highlight how browser extensions can influence affiliate attribution behind the scenes, an increasingly important issue for publishers, creators, retailers, and technology platforms that rely on referral-based commerce.