In a rare and candid interview, Microsoft co-founder and billionaire philanthropist Bill Gates has opened up about his evolving relationship with his youngest daughter, Phoebe Gates, and the emotional complexities of wealth, legacy, and parenting. Speaking at a recent summit on wealth and responsibility in San Francisco, Gates admitted that he harbors genuine “worries” about the impact of money on his children — particularly now that he has made a firm decision to cut their inheritance.

Phoebe Gates, 21, has recently made headlines of her own — as a fashion-forward socialite, Stanford student, and increasingly vocal figure on social media platforms like TikTok and Instagram. But it’s her status as a “nepo baby” — the daughter of one of the wealthiest men in history — that continues to follow her.

“I’m Concerned About Dependency”

When asked about how he is managing wealth transfer to his children, Gates didn’t shy away from the difficult truth.

“I love all my children dearly,” Gates said, referring to Phoebe and her older siblings, Jennifer and Rory. “But I do worry. I’ve made it very clear: they’re not inheriting the bulk of my fortune. And sometimes I worry that they’ll come asking for help — and not because they need it, but because they expect it.”

The Microsoft founder, whose net worth is estimated at over $130 billion, has long championed the belief that inherited wealth can do more harm than good if not handled properly. His philanthropic work through the Bill & Melinda Gates Foundation, which he co-chairs with his ex-wife Melinda French Gates, has been the primary beneficiary of his financial empire.

“I want them to carve out their own identities, their own paths,” he emphasized. “Phoebe is smart and creative. But she grew up in a world very different from most people — and I can’t pretend that doesn’t come with its own baggage.”

The “Nepo Baby” Dilemma

Phoebe Gates has embraced the spotlight more than her older siblings, often posting glamorous photos from fashion shows and luxury events. While she’s also used her platform to promote women’s rights and social issues, she has not been immune to criticism — especially from those who see her as benefiting unfairly from her last name.

In response to the “nepo baby” label, Phoebe has previously said:

“I know I’m privileged. But I also work hard, and I want to be known for my ideas — not just my dad’s name.”

However, Gates’ recent comments may fuel speculation that there’s a growing tension behind the scenes, particularly as Phoebe becomes more financially independent — yet still occasionally reliant on family resources.

A Strategic Decision

According to sources close to the Gates family, Bill has already set up trusts and limits to how much each of his children will receive — reportedly no more than $10 million apiece, a figure that’s small relative to his net worth.

“He’s not being cruel,” said a family friend. “He’s being strategic. He wants his kids to be motivated — not entitled.”

Melinda French Gates, who has also been vocal about the importance of humility and responsibility in wealth, is said to support the inheritance limits. However, insiders note that she’s occasionally more sympathetic to Phoebe’s ambitions in the creative world.

A Cautionary Tale?

Gates’ concerns echo those of other billionaires — like Warren Buffett and Mark Zuckerberg — who have also vowed to leave the majority of their fortunes to charitable causes, not their children.

As Gates wrapped up his comments, he added with a hint of sadness:

“As a parent, you always want to be there for your kids. But you also don’t want to become the ATM. It’s a delicate balance.”

Public Reaction

Online reactions to Gates’ remarks have been mixed. Some praised his honesty and commitment to instilling values of hard work and independence. Others accused him of being “out of touch,” given that even $10 million is still more than most people will see in a lifetime.

Regardless of public opinion, one thing is clear: Bill Gates is trying to navigate one of the hardest challenges for any ultra-wealthy parent — raising grounded, responsible adults in a world shaped by extreme privilege.

And for Phoebe Gates, the journey toward self-reliance may now carry more weight than ever.