# Phoebe Gates' Secret Stanford Class on 'Ruling the World' and Startup Scandal The controversial teachings behind Phia's alleged wire fraud practices - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-08-21 - **Topic:** [Entrepreneurship](https://brifing.si/c/entrepreneurship) - **Original article:** - **On Brifing:** https://brifing.si/s/b1657c04-d0db-4c44-9cad-d6851971378a ## Stanford's Secret 'Rule the World' Class Stanford University's unofficial course 'So You Think You Can Rule the World?', taught by Justin Lewis-Weber, operated outside the official curriculum. Admission required student referrals, with only 12 students accepted per quarter. The 10-week program taught techniques to manipulate power structures, drawing from writings by Peter Thiel and Paul Graham. 2026 graduate Theo Baker described it in his memoir as 'a Skull and Bones for the aspiring tech elite', highlighting its exclusive nature and controversial content. ## Phoebe Gates' Connection to the Class Phoebe Gates, daughter of Microsoft founder Bill Gates, was among the students who took this secret course. She reportedly applied its teachings when co-founding Phia, an AI personal shopping assistant startup. According to The Stanford Daily, Gates recruited Phia's early employees through connections made in the class. Gates later stated that Stanford changed her life path not through classes but through the people she met, giving her confidence to build Phia despite having no initial business ambitions. ## Phia's Meteoric Rise Founded in 2025 by Gates and roommate Sophia Kianni in a Stanford dorm, Phia secured $8 million in seed funding from celebrity investors including Kris Jenner and Hailey Bieber. By 2026, the company raised $35 million in Series A funding led by Hans Tung, reaching a $185 million valuation. The startup promised to revolutionize online shopping through AI automation, eliminating manual price comparisons for users. ## Cookie Stuffing Allegations A Bloomberg investigation revealed that over half of Phia's June revenue allegedly came from 'cookie stuffing', an illegal practice where tracking codes are placed on users' devices without consent. This affiliate fraud violates Google's Chrome Extension policy and carries potential 20-year prison sentences. While Phia claims to have removed these features on July 7, internal Slack messages suggest awareness of the practice since December 2025. ## The Course's Controversial Curriculum Theo Baker's memoir describes how 'Rule' taught students to exploit loopholes and manipulate others - starkly contrasting Stanford's traditional entrepreneurship courses. Founder Justin Lewis-Weber preached that 'a select group could extract great value from people around them.' One alumnus confessed to using these techniques to deceive venture capitalists, though details remain undisclosed. ## Structure of the Secret Society Though held weekly on campus with guest speakers, 'Rule' wasn't an official Stanford course. Sessions covered prisoner's dilemmas and multipolar traps while fostering connections among what Baker called 'the very best of the best.' Lewis-Weber reportedly networked strategically with students he deemed future assets, creating what participants described as an irresistible allure of exclusive billionaire secrets. ## Phia's Response and Current Status A Phia spokesperson stated all misattribution features were removed on July 7, with transaction reversals underway for brand partners. The company is hiring a compliance head to prevent recurrence. However, leaked Slack communications contradict the timeline, showing executive awareness since December 2025. These allegations pose existential threats to Phia's $185 million valuation and future operations. ## Ethical Questions for Entrepreneurship This scandal raises fundamental questions about ethical boundaries in tech startups. The combination of privileged access through elite education and questionable business practices has sparked industry-wide debate about means versus ends. Phia's case particularly highlights responsibilities of founders from influential families. How the company navigates this crisis may set precedents for accountability in Silicon Valley's startup culture. ## Sources covering this story - https://fortune.com/2026/08/21/phoebe-gates-secret-stanford-class-how-to-rule-the-world-wire-fraud/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._