Bill Gates
Entrepreneur Bill Gates
founded the world's largest software business, Microsoft, with Paul Allen, and
subsequently became one of the richest men in the world.
Who Is Bill
Gates
Entrepreneur and businessman Bill Gates and his business partner Paul Allen founded
and built the world's largest software business, Microsoft, through
technological innovation, keen business strategy, and aggressive business
tactics. In the process, Gates became one of the richest men in the world. In
February 2014, Gates announced that he was stepping down as Microsoft's
chairman to focus on charitable work at his foundation, the Bill and Melinda Gates Foundation.
Early Life
Gates was born William Henry Gates III on October 28, 1955, in
Seattle, Washington. Gates grew up in an upper-middle-class family with his
older sister, Kristianne, and younger sister, Libby. Their father, William H.
Gates Sr., was a promising, if somewhat shy, law student when he met his future
wife, Mary Maxwell. She was an athletic, outgoing student at the University of
Washington, actively involved in student affairs and leadership.
The Gates family atmosphere was warm and close, and all three
children were encouraged to be competitive and strive for excellence. Gates
showed early signs of competitiveness when he coordinated family athletic games
at their summer house on Puget Sound. He also relished playing board games (Risk
was his favorite) and excelled at Monopoly.
Gates had a very close relationship with his mother, Mary, who
after a brief career as a teacher devoted her time to helping raise the
children and working on civic affairs and with charities. She also served on
several corporate boards, including those of the First Interstate Bank in
Seattle (founded by her grandfather), the United Way, and International Business
Machines (IBM). She would often take Gates along when she volunteered in
schools and at community organizations.
Education
Gates was a voracious reader as a child, spending many hours
poring over reference books such as the Encyclopedia. Around the age of 11 or
12, Gates's parents began to have concerns about his behavior. He was doing
well in school, but he seemed bored and withdrawn at times, and his parents
worried he might become a loner.
Though they were strong believers in public education, when Gates
turned 13, his parents enrolled him at Seattle's exclusive preparatory Lakeside
School. He blossomed in nearly all his subjects, excelling in math and science,
but also doing very well in drama and English.
While at Lakeside School, a Seattle computer company offered to
provide computer time for the students. The Mother's Club used proceeds from
the school's rummage sale to purchase a teletype terminal for students to use.
Gates became entranced with what a computer could do and spent much of his free
time working on the terminal. He wrote a tic-tac-toe program in BASIC computer
language that allowed users to play against the computer.
Gates graduated from Lakeside in 1973. He scored 1590 out of 1600
on the college SAT test, a feat of intellectual achievement that he boasted
about for several years when introducing himself to new people.
Education
Gates was a voracious reader as a child, spending many hours
poring over reference books such as the Encyclopedia. Around the age of 11 or
12, Gates's parents began to have concerns about his behavior. He was doing
well in school, but he seemed bored and withdrawn at times, and his parents
worried he might become a loner.
Though they were strong believers in public education, when Gates
turned 13, his parents enrolled him at Seattle's exclusive preparatory Lakeside
School. He blossomed in nearly all his subjects, excelling in math and science,
but also doing very well in drama and English.
While at Lakeside School, a Seattle computer company offered to
provide computer time for the students. The Mother's Club used proceeds from
the school's rummage sale to purchase a teletype terminal for students to use.
Gates became entranced with what a computer could do and spent much of his free
time working on the terminal. He wrote a tic-tac-toe program in BASIC computer
language that allowed users to play against the computer.
Gates graduated from Lakeside in 1973. He scored 1590 out of 1600
on the college SAT test, a feat of intellectual achievement that he boasted
about for several years when introducing himself to new people.
In 1970, at the age of 15, Gates and Allen went into business
together, developing "Traf-o-Data," a computer program that monitored
traffic patterns in Seattle. They netted $20,000 for their efforts. Gates and
Allen wanted to start their own company, but Gates' parents wanted him to finish
school and go on to college, where they hoped he would work to become a lawyer.
Allen went to Washington State University, while Gates went to
Harvard, though the pair stayed in touch. After attending college for two
years, Allen dropped out and moved to Boston, Massachusetts, to work for
Honeywell. Around this time, he showed Gates an edition of Popular Electronics magazine
featuring an article on the Altair 8800 mini-computer kit. Both young men were
fascinated with the possibilities of what this computer could create in the
world of personal computing.
The Altair was made by a small company in Albuquerque, New Mexico,
called Micro Instrumentation and Telemetry Systems (MITS). Gates and Allen
contacted the company, proclaiming that they were working on a BASIC software
program that would run the Altair computer. In reality, they didn't have an
Altair to work with or the code to run it, but they wanted to know if MITS was
interested in someone developing such software.
MITS was, and its president, Ed Roberts, asked the boys for a
demonstration. Gates and Allen scrambled, spending the next two months writing
the BASIC software at Harvard's computer lab. Allen traveled to Albuquerque for
a test run at MITS, never having tried it out on an Altair computer. It worked
perfectly. Allen was hired at MITS, and Gates soon left Harvard to work with
him. Together they founded Microsoft.
Allen remained with Microsoft until 1983 when he was diagnosed
with Hodgkin's disease. Though his cancer went into remission a year later with
intensive treatment, Allen resigned from the company. Rumors abound as to why
Allen left Microsoft. Some say Gates pushed him out, but many say it was a
life-changing experience for Allen and he saw there were other opportunities
that he could invest his time in.
Founding
Microsoft
In 1975, Gates and Allen formed Micro-Soft, a blend of
"micro-computer" and "software" (they dropped the hyphen
within a year). The company's first product was BASIC software that ran on the
Altair computer.
At first, all was not smooth sailing. Although Microsoft’s BASIC
software program for the Altair computer netted the company a fee and
royalties, it wasn't meeting their overhead. According to Gates' later account,
only about 10 percent of the people using BASIC in the Altair computer had
actually paid for it.
Microsoft's BASIC software was popular with computer hobbyists,
who obtained pre-market copies and were reproducing and distributing them for
free. At this time, many personal computer enthusiasts were not in it for the money.
They felt the ease of reproduction and distribution allowed them to share
software with friends and fellow computer enthusiasts. Gates thought
differently. He saw the free distribution of software as stealing, especially
when it involved software that was created to be sold.
In February 1976, Gates wrote an open letter to computer
hobbyists, saying that continued distribution and use of software without
paying for it would "prevent good software from being written." In
essence, pirating software would discourage developers from investing time and
money into creating quality software. The letter was unpopular with computer
enthusiasts, but Gates stuck to his beliefs and would use the threat of
innovation as a defense when faced with charges of unfair business practices.
Gates had an acrimonious relationship with MITS president Ed
Roberts, often resulting in shouting matches. The combative Gates clashed with
Roberts on software development and the direction of the business. Roberts
considered Gates spoiled and obnoxious.
In 1977, Roberts sold MITS to another computer company and went
back to Georgia to enter medical school and become a doctor.
Gates and Allen were on their own. The pair had to sue the new
owner of MITS to retain the software rights they had developed for Altair.
Microsoft wrote software in different formats for other computer companies,
and, at the beginning of 1979, Gates moved the company's operations to
Bellevue, Washington, just east of Seattle.
Gates was glad to be home again in the Pacific Northwest and threw
himself into his work. All 25 employees of the young company had broad
responsibilities for all aspects of the operation, product development,
business development, and marketing.
Although the company started out on shaky footing, by 1979
Microsoft was grossing approximately $2.5 million. At the age of 23, Gates
placed himself as the head of the company. With his acumen for software
development and a keen business sense, he led the company and worked as its
spokesperson. Gates personally reviewed every line of code the company shipped,
often rewriting code himself when he saw it necessary.
Microsoft’s
Software for IBM PCs
As the computer industry grew, with companies like Apple, Intel, and IBM developing hardware and components, Gates was continuously on the road
touting the merits of Microsoft software applications. He often took his mother
with him. Mary was highly respected and well connected with her membership on
several corporate boards, including IBM's. It was through Mary that Gates met
the CEO of IBM.
In November 1980, IBM was looking for software that would operate
their upcoming personal computer (PC) and approached Microsoft. Legend has it
that at the first meeting with Gates, someone at IBM mistook him for an office
assistant and asked him to serve coffee.
Gates did look very young, but he quickly impressed IBM,
convincing them that he and his company could meet their needs. The only
problem was that Microsoft had not developed the basic operating system that
would run IBM's new computers.
Not to be stopped, Gates bought an operating system that was
developed to run on computers similar to IBM's PC. He made a deal with the
software developer, making Microsoft the exclusive licensing agent and later
full owner of the software but did not tell them of the IBM deal.
The company later sued Microsoft and Gates for withholding
important information. Microsoft settled out of court for an undisclosed
amount, but neither Gates nor Microsoft admitted to any wrongdoing.
Gates had to adapt the newly purchased software to work for the
IBM PC. He delivered it for a $50,000 fee, the same price he had paid for the
software in its original form. IBM wanted to buy the source code, which would
have given them the information to the operating system.
Gates refused, instead proposing that IBM pay a licensing fee for
copies of the software sold with their computers. Doing this allowed Microsoft
to license the software they called MS-DOS to any other PC manufacturer, should
other computer companies clone the IBM PC, which they soon did. Microsoft also
released software called Softcard, which allowed Microsoft BASIC to operate on
Apple II machines.
Following the development of software for IBM, between 1979 and
1981 Microsoft's growth exploded. Staff increased from 25 to 128, and revenue
shot up from $2.5 million to $16 million. In mid-1981, Gates and Allen
incorporated Microsoft, and Gates was appointed president and chairman of the
board. Allen was named executive vice president.
By 1983, Microsoft was going global with offices in Great Britain
and Japan. An estimated 30 percent of the world's computers ran on its
software.
Rivalry With
Steve Jobs
Though their rivalry is legendary, Microsoft and Apple shared many of
their early innovations. In 1981, Apple, at the time led by Steve Jobs, invited
Microsoft to help develop software for Macintosh computers. Some developers
were involved in both Microsoft development and the development of Microsoft
applications for Macintosh. The collaboration could be seen in some shared
names between the Microsoft and Macintosh systems
It was through this knowledge sharing that Microsoft developed
Windows, a system that used a mouse to drive a graphic interface, displaying
text and images on the screen. This differed greatly from the text-and-keyboard-driven MS-DOS system where all text formatting showed on the screen as code and
not what actually would be printed.
Gates quickly recognized the threat this kind of software might
pose for MS-DOS and Microsoft overall. For the unsophisticated user—which was
most of the buying public—the graphic imagery of the competing VisiCorp
software used in a Macintosh system would be so much easier to use.
Gates announced in an advertising campaign that a new Microsoft
operating system was about to be developed that would use a graphic interface.
It was to be called "Windows," and would be compatible with all PC
software products developed on the MS-DOS system. The announcement was a bluff,
in that Microsoft had no such program under development.
As a marketing tactic, it was sheer genius. Nearly 30 percent of
the computer market was using the MS-DOS system and would wait for Windows
software rather than change to a new system. Without people willing to change
formats, software developers were unwilling to write programs for the VisiCorp
system and it lost momentum by early 1985.
In November 1985, nearly two years after his announcement, Gates
and Microsoft launched Windows. Visually the Windows system looked very similar
to the Macintosh system Apple Computer Corporation had introduced nearly two
years earlier.
Apple had previously given Microsoft full access to its technology while it was working on making Microsoft products compatible with Apple computers. Gates had advised Apple to license their software but they
ignored the advice, being more interested in selling computers.
Once again, Gates took full advantage of the situation and created
a software format that was strikingly similar to the Macintosh. Apple
threatened to sue, and Microsoft retaliated, saying it would delay shipment of
its Microsoft-compatible software for Macintosh users.
In the end, Microsoft prevailed in the courts. It could prove that
while there were similarities in how the two software systems operated, each
individual function was distinctly different.
A
Competitive Reputation
Despite the success of Microsoft, Gates never felt totally secure.
Always checking on the competition over his shoulder, Gates developed a
white-hot drive and competitive spirit. Gates' assistant reported coming to
work early to find someone sleeping under a desk. She considered calling
security or the police until she discovered it was Gates.
Gates' intelligence allowed him to see all sides of the software
industry, from product development to corporate strategy. When analyzing any
corporate move, he developed a profile of all the possible cases and ran through them, asking questions about anything that could possibly happen.
It was through this knowledge sharing that Microsoft developed
Windows, a system that used a mouse to drive a graphic interface, displaying
text and images on the screen. This differed greatly from the text-and-keyboard-driven MS-DOS system where all text formatting showed on the screen as code and
not what actually would be printed.
Gates quickly recognized the threat this kind of software might
pose for MS-DOS and Microsoft overall. For the unsophisticated user—which was
most of the buying public—the graphic imagery of the competing VisiCorp
software used in a Macintosh system would be so much easier to use.
Gates announced in an advertising campaign that a new Microsoft
operating system was about to be developed that would use a graphic interface.
It was to be called "Windows," and would be compatible with all PC
software products developed on the MS-DOS system. The announcement was a bluff,
in that Microsoft had no such program under development.
As a marketing tactic, it was sheer genius. Nearly 30 percent of
the computer market was using the MS-DOS system and would wait for Windows
software rather than change to a new system. Without people willing to change
formats, software developers were unwilling to write programs for the VisiCorp
system and it lost momentum by early 1985.
In November 1985, nearly two years after his announcement, Gates
and Microsoft launched Windows. Visually the Windows system looked very similar
to the Macintosh system Apple Computer Corporation had introduced nearly two
years earlier.
Apple had previously given Microsoft full access to its technology while it was working on making Microsoft products compatible with Apple computers. Gates had advised Apple to license their software but they
ignored the advice, being more interested in selling computers.
Once again, Gates took full advantage of the situation and created
a software format that was strikingly similar to the Macintosh. Apple
threatened to sue, and Microsoft retaliated, saying it would delay shipment of
its Microsoft-compatible software for Macintosh users.
In the end, Microsoft prevailed in the courts. It could prove that
while there were similarities in how the two software systems operated, each
individual function was distinctly different.
A
Competitive Reputation
Despite the success of Microsoft, Gates never felt totally secure.
Always checking on the competition over his shoulder, Gates developed a
white-hot drive and competitive spirit. Gates' assistant reported coming to
work early to find someone sleeping under a desk. She considered calling
security or the police until she discovered it was Gates.
Gates' intelligence allowed him to see all sides of the software
industry, from product development to corporate strategy. When analyzing any
corporate move, he developed a profile of all the possible cases and ran through them, asking questions about anything that could possibly happen.
In 2006, Gates announced he was transitioning himself from
full-time work at Microsoft to devote more quality time to the foundation. His
last full day at Microsoft was June 27, 2008.
In February 2014, Gates stepped down as chairman of Microsoft to move into a new position as a technology adviser. Longtime Microsoft CEO
Steve Ballmer was replaced by 46-year-old Satya Nadella.
Personal
Life
In 1987, a 23-year-old Microsoft product manager named Melinda
French caught the eye of Gates, then 32. The very bright and
organized Melinda was a perfect match for Gates. In time, their relationship
grew as they discovered an intimate and intellectual connection. On January 1,
1994, Melinda and Gates were married in Hawaii.
Following the devastating death of his mother to breast cancer
just a few months after their wedding, they took some time off in 1995 to
travel and get a new perspective on life and the world. In 1996, their first
daughter, Jennifer, was born. Their son, Rory, was born in 1999, and a second
daughter, Phoebe, arrived in 2002.
The pair announced the end of their marriage in May 2021.
Personal
Wealth
In March 1986, Gates took Microsoft public with an initial public
offering (IPO) of $21 per share, making him an instant millionaire at age 31.
Gates held 45 percent of the company's 24.7 million shares, making his stake at
that time $234 million of Microsoft's $520 million.
Over time, the company's stock increased in value and split
numerous times. In 1987, Gates became a billionaire when the stock hit $90.75 a
share. Since then, Gates has been at the top, or at least near the top, of
Forbes' annual list of the top 400 wealthiest people in America. In 1999, with
stock prices at an all-time high and the stock splitting eight-fold since its
IPO, Gates' wealth briefly topped $101 billion.
Home
In 1997, Gates and his family moved into a 55,000-square-foot
house on the shore of Lake Washington. Though the house serves as a business
center, it is said to be very cozy for the couple and their three children.
The Bill and
Melinda Gates Foundation
In 1994, Bill and Melinda established the William H. Gates
Foundation, which was dedicated to supporting education, world health, and
investment in low-income communities around the world. The organization also
tackles domestic issues, such as helping students in the United States become
college-ready.
With Melinda's influence, Bill had taken an interest in becoming a
civic leader in the footsteps of his mother, studying the philanthropic work of
American industrial titans Andrew
Carnegie and John D.
Rockefeller. He realized that he had an obligation to give more of his wealth
to charity.
In 2000, the couple combined several family foundations and made a
$28 billion contribution to form the Bill & Melinda Gates Foundation. Over
the next few years, Bill’s involvement with the Bill & Melinda Gates
Foundation occupied much of his time and even more of his interest.
Since stepping down from Microsoft, Gates has devoted much of his time
and energy to the work of the Bill & Melinda Gates Foundation. In 2015,
Gates spoke out in favor of national Common Core standards in grades K through
12 and charter schools. Gates also proved to be a groundbreaking employer when,
around this time, the foundation announced that it would give its employees a
year's paid leave after the birth or adoption of a child.
In 2017, the foundation launched the first of what was to become
its annual "Goalkeepers" report, an examination of progress made in
several important areas related to public health, including child mortality,
malnutrition, and HIV. At the time, Gates identified infectious and chronic
diseases as the two biggest public health concerns that needed to be addressed
over the coming decade.
In April 2018, Gates announced that he was teaming with Google
co-founder Larry Page to
provide $12 million in funding for a universal flu vaccine. He said the funds
would be awarded in grants of up to $2 million for individual efforts that are
"bold and innovative," aiming to begin clinical trials by 2021.
Although some questioned whether $12 million would be enough to spark any real
medical breakthrough, others praised the intentions behind the investment,
while Gates indicated that there could be more to come.
Alzheimer's
Research
Gates revealed in November 2017 that he was investing $50 million
of his own money into the Dementia Discovery Fund. He would follow with another
$50 million toward start-up ventures working in Alzheimer’s research. It was
said to be a personal matter for Gates, who has seen the devastating effects of
the disease on his own family members.
Building a
'Smart City' in Arizona
In 2017, it was revealed that one of Gates's firms had invested
$80 million into the development of a "smart city" near Phoenix,
Arizona. The proposed city, named Belmont, will "create a forward-thinking
community with a communication and infrastructure spine that embraces
cutting-edge technology, designed around high-speed digital networks, data
centers, new manufacturing technologies, and distribution models, autonomous
vehicles and autonomous logistics hubs," according to the Belmont Partners
real estate investment group.
Of the nearly 25,000 acres of land designated for the site; it was
reported that 3,800 acres will go toward office, commercial, and retail space.
Another 470 acres will be used for public schools, leaving room for 80,000
residential units.
Coronavirus
After years of warning that the world was not ready for the next
pandemic, Gates saw his ominous words come true with the outbreak of the novel
coronavirus in 2020. In March, the Bill and Melinda Gates Foundation teamed
with the Wellcome Trust and Mastercard to pledge $125 million toward efforts to
curb the outbreak, and Gates subsequently revealed that his foundation was
prepared to invest billions of dollars into building factories earmarked for
the development of a vaccine.
Awards
Gates has received numerous awards for philanthropic work. Time magazine named Gates
one of the most influential people of the 20th century. The magazine also named
Gates and his wife Melinda, along with rock band U2's lead singer, Bono, as the 2005
Persons of the Year.
Gates holds several honorary doctorates from universities
throughout the world. He was knighted as an honorary Knight Commander of the
Order of the British Empire bestowed by Queen
Elizabeth II in 2005.
In 2006, Gates and his wife were awarded the Order of the Aztec
Eagle by the Mexican government for their philanthropic work throughout the
world in the areas of health and education.
In 2016, the couple were again recognized for their philanthropic
work when they were named recipients of the Presidential Medal of Freedom
by President
Barack Obama.
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