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Microsoft Corporation

SoftwareFounded 1975
Reviewed by Swet Parvadiya
Company data updated: October 2026

Founders

Who Founded Microsoft?

Bill Gates, Paul Allen · Founded 1975 · HQ today: Redmond, Washington, United States

Who founded Microsoft?

Microsoft was founded by Bill Gates, Paul Allen in 1975 in Albuquerque, United States. It is now led by Satya Nadella.

Founders
Bill Gates, Paul Allen
Founded
1975
Headquarters
Redmond, Washington, United States
Number of founders
2
Current CEO
Satya Nadella (since 2014)
Where was Microsoft founded?
Microsoft was founded in Albuquerque, United States in 1975. news.microsoft.com
When was Microsoft founded?
Microsoft was founded in 1975.
Who started Microsoft?
Microsoft was founded by Bill Gates and Paul Allen.
How old is Microsoft?
Microsoft is 51 years old as of 2026.

Founding Story

In 1980 IBM needed an operating system for its upcoming personal computer and turned to Microsoft, then a small company best known for Altair BASIC. Microsoft licensed 86-DOS (QDOS) from Seattle Computer Products, later buying it outright, adapted it into MS-DOS, and licensed it to IBM. Microsoft kept the right to license MS-DOS to other PC makers, so as IBM-compatible clones spread, nearly all of them shipped Microsoft software. That licensing structure became the base of the Windows and Office business.

What each Microsoft founder did

FounderRole at foundingContributionDepartureSource
Bill GatesCo-founder; chief executive 1975-2000Wrote, with Allen, the BASIC interpreter for the MITS Altair 8800 that became Microsoft's first product, then built the company around licensing software to hardware makers rather than selling machines.Handed the chief executive role to Steve Ballmer in 2000, staying on as chairman and chief software architect.en.wikipedia.org
Paul AllenCo-founder; executive vice president to 1983Spotted the Altair 8800 announcement that prompted the BASIC interpreter, wrote the Altair emulator the pair developed it on, and named the company Micro-Soft.Stepped down as executive vice president in 1983 following a Hodgkin's lymphoma diagnosis, remaining a major shareholder.en.wikipedia.org

Bill Gates

Co-founder 1975

Background

Bill Gates grew up in Seattle and began programming as a teenager at Lakeside School, where he met Paul Allen. Before Microsoft, he wrote code for school scheduling projects, worked with Allen on Traf-O-Data, and entered Harvard with a reputation for unusual programming intensity. Gates was not merely a technical founder; he was the commercial architect of Microsoft's earliest strategy. When Allen saw the Altair 8800 opportunity in 1975, Gates helped turn a speculative idea into a working BASIC interpreter and then into a business. His background combined mathematics, programming discipline, legal caution, and competitive instinct. That mix shaped Microsoft's emphasis on licensing, contracts, platform control, and developer tools. Gates left Harvard to focus on Microsoft because he believed the software layer around personal computers could scale faster than hardware manufacturing. His early experience also made him unusually sensitive to piracy and intellectual property, which explains his famous 1976 letter arguing that software creators needed to be paid.

Role at Microsoft Corporation

Microsoft was founded in 1975 in Albuquerque, New Mexico, by Bill Gates and Paul Allen, childhood friends from Seattle who had spent their teenage years finding ways to get free time on mainframe computers. In January 1975 Allen saw the Altair 8800, an early microcomputer, on the cover of Popular Electronics and showed it to Gates. The machine had no programming language, so the two wrote a version of BASIC for it in a few weeks. They worked on an emulator and had never touched an actual Altair. They founded 'Micro-Soft' to sell the software. The decisive deal came in 1980, when IBM needed an operating system for its new Personal Computer. Gates bought an existing system, QDOS, for $50,000, adapted it into MS-DOS and licensed it to IBM. Microsoft kept the right to license MS-DOS to other computer makers, and that right became the basis of its dominance in PC software.

Bill Gates was born in 1955.

Paul Allen

Co-founder 1975

Background

Paul Allen was the co-founder whose timing and technical curiosity helped create Microsoft. He met Bill Gates at Lakeside School in Seattle, where both developed an early fascination with programming. Before Microsoft, Allen attended Washington State University, left to work as a programmer, and later joined Honeywell in the Boston area. His defining pre-company contribution was spotting the Altair 8800 on the cover of Popular Electronics in 1975 and convincing Gates that the personal computer market was arriving sooner than expected. Allen understood the hardware shift and saw that even primitive machines would need programming languages. He worked with Gates to create Altair BASIC, helping transform an idea into the company's first product. Allen's background was less publicly combative than Gates', but he brought deep technical imagination and a broad view of computing's possibilities. He helped push Microsoft into existence at the precise moment when software was ready to become a separate industry.

Role at Microsoft Corporation

Paul Allen co-founded Microsoft and was crucial to its earliest technical and strategic decisions. He helped develop Altair BASIC, gave the company its original name, and participated in the operating-system opportunity that led to MS-DOS. Allen left active management in the early 1980s after being diagnosed with Hodgkin lymphoma, though he remained a major shareholder for many years. After Microsoft, he became an investor, philanthropist, sports-team owner, and backer of science, space, music, artificial intelligence, and cultural institutions through Vulcan Inc. His lasting influence on Microsoft is easy to understate because he exited daily operations early, but the company might not have existed without his ability to see the Altair as a commercial signal rather than a hobbyist curiosity. Allen represented the imaginative technical side of Microsoft's founding: the belief that small computers would become general-purpose tools if software could make them useful.

Paul Allen was born in 1953. Education: Harvard University.

Microsoft Corporation: CEO & Leadership History

Full timeline →

Satya Nadella

Chairman and CEO

2014 – Present

Nadella made Azure and Microsoft 365 the company's core, opened Microsoft to Linux and open source, and positioned it early in generative AI through OpenAI. Revenue grew from about $87 billion in FY2014 to $331.8 billion in FY2026; he has also served as board chair since 2021.

Steve Ballmer

CEO

2000 – 2014

Ballmer grew revenue from about $23 billion in FY2000 to about $78 billion in FY2013 and built the enterprise server and sales business that Azure later scaled on. His tenure is also remembered for missing mobile and for the Nokia handset deal that was later written down.

Bill Gates

Co-founder and CEO

1975 – 2000

Gates built Microsoft's licensing model: software sold to many hardware makers rather than tied to one. That approach made MS-DOS, Windows, and Office industry standards, took Microsoft public in 1986, and also drew the antitrust scrutiny that defined the late 1990s.

Compare Microsoft Corporation Leadership With Competitors

Keep researching Microsoft

Who Founded Microsoft? FAQ

Who were Bill Gates and Paul Allen and how did they meet?

Bill Gates (born 1955) and Paul Allen (1953 to 2018) met as students at Lakeside School in Seattle, Washington, in 1968. Sharing an intense passion for computer programming, they spent late nights coding on a teletype terminal connected to a PDP-10 mainframe and formed their first venture, Traf-O-Data, in 1972 to analyze traffic counter data.

What was the 'Popular Electronics' magazine article that sparked Microsoft's founding in 1975?

In December 1974, Paul Allen saw the January 1975 cover of Popular Electronics magazine showcasing the MITS Altair 8800 microcomputer. Allen ran to Gates's Harvard dorm room, realizing that the microcomputer revolution was beginning and needed a programming language. They called MITS founder Ed Roberts, claiming they had a working BASIC interpreter.

How did Gates and Allen write Altair BASIC in eight weeks?

Without owning an Altair computer, Gates and Allen wrote an Intel 8080 processor emulator on Harvard's PDP-10 mainframe, while Monte Davidoff wrote the floating-point math routines. In March 1975, Paul Allen flew to Albuquerque, loaded the code via paper tape into an Altair 8800, and it worked flawlessly on the first try, leading MITS to sign a distribution contract.

What was Bill Gates's famous 1976 'Open Letter to Hobbyists'?

In February 1976, Bill Gates published an open letter to the Homebrew Computer Club and computer hobbyists who were freely copying paper tapes of Altair BASIC. Gates passionately argued that unauthorized software copying was software theft and that commercial developers must be fairly paid to create high-quality software, establishing the legal foundation of the commercial software industry.

How did Microsoft secure the historic IBM PC DOS contract in 1980?

In 1980, IBM approached Microsoft to provide an operating system for its upcoming IBM Personal Computer. Microsoft bought the rights to 86-DOS (QDOS - Quick and Dirty Operating System) from Tim Paterson of Seattle Computer Products for $50,000, modified it into MS-DOS, and effectively retained the non-exclusive licensing rights, allowing Microsoft to license MS-DOS to every PC clone maker worldwide.

Why did Paul Allen leave Microsoft in 1983?

Paul Allen resigned from his active executive role at Microsoft in 1983 after being diagnosed with Hodgkin's lymphoma. After successful cancer treatment, Allen remained on Microsoft's board until 2000 and used his multi-billion-dollar fortune to fund space exploration (SpaceShipOne), brain science (Allen Institute), sports teams (Seattle Seahawks, Portland Trail Blazers), and philanthropy.

How did the 1986 Microsoft Initial Public Offering (IPO) create thousands of millionaires?

On March 13, 1986, Microsoft went public on the NASDAQ at $21 per share, raising $61 million. The stock surged immediately, making 30-year-old Bill Gates a billionaire by 1987 (then the youngest self-made billionaire in history) and generating an estimated 12,000 employee millionaires through broad stock option grants.

What was Bill Gates's role as Chief Software Architect from 2000 to 2008?

After stepping down as CEO in 2000, Bill Gates served as Chief Software Architect until 2008, directing the architectural development of the .NET framework, Windows XP, Windows 7, and early cloud research before transitioning full-time to the Bill & Melinda Gates Foundation.

How did Bill Gates and Paul Allen start working together as teenagers?

Bill Gates and Paul Allen met at the private Lakeside School in Seattle in 1968, where they bonded over an early Teletype terminal connected to a PDP-10 computer. As high schoolers, they founded Traf-O-Data to analyze municipal traffic data. In December 1974, Allen spotted the Altair 8800 on the cover of Popular Electronics, convinced Gates to drop out of Harvard, and together they launched Microsoft in Albuquerque.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.