Running Scared to Leading the Way: Bill Gates Reflects on Microsoft at 50

s Microsoft approaches its 50th anniversary in April 2025, co-founder Bill Gates recently took a moment to reflect on the incredible journey from a two-person partnership with Paul Allen in 1975 to the global tech giant it is today.

His insights reveal a story not just of immense success, but also of navigating profound challenges, embracing a unique vision, and ultimately, feeling immense pride in the company's continued evolution, particularly as it steps boldly into the age of AI.

The 'Crazy Idea' of Horizontal Software

Looking back, Gates recalled the "crazy ideas" that fueled Microsoft's beginnings: a fundamental belief in the importance of software and confidence in their ability to hire top talent and build superior software tools.

What truly set Microsoft apart, he explained, was its deliberate strategy to be a horizontal software company.

"Many of our competitors were single product companies," Gates noted, mentioning greats like Lotus with 1-2-3 and WordPerfect with its namesake word processor.

"We are just... we just write software, and we're global." Microsoft aimed to do all kinds of software, a broad, encompassing vision that Gates feels wasn't really matched until Google emerged.

From 'Running Scared' to Stability

Despite its later dominance, Gates admitted to "always running scared" in the early decades.

It wasn't until the late 1990s, around 1999, that the company's success felt substantial enough for him to finally breathe a little easier.

"We were so successful that even I could say okay, we might even make a few mistakes and not, you know, disappear," he reflected. "Okay yeah, we are in pretty good shape."

Navigating the 'Schizophrenic' Storms

That stability was soon tested. Gates described the period grappling with the rise of the internet and the simultaneous pressure of the antitrust lawsuit as a "schizophrenic thing."

The company faced conflicting narratives: "Are we so obsolete that nobody should care about us? Are we so dominant that we have to be split into pieces? I mean, which one is it?" Gates acknowledged that, frustratingly, "both had an element of truth to them."

Passing the Baton and the 'Thrill' of Continued Success

Gates expressed genuine delight about Microsoft's trajectory after he stepped back. He credited Steve Ballmer for putting his "kind of mind-blowing energy into it."

Crucially, both he and Ballmer recommended Satya Nadella for the CEO role. "We think Satya is the one," they told the board.

Nadella's performance has clearly impressed him. "He's done even better than I expected," Gates stated. He voiced his relief that his fears about the company potentially faltering after his departure never materialized.

"I always thought 'Oh god, I'm going to leave and the company's going to get screwed up... this is going to be torturous.'" Instead, seeing Microsoft thriving is "a great thrill for me."

The Future: Hyper-Competition and the AI Frontier

Looking ahead, Gates sees software as "more important today than ever," so powerful it creates a "challenge of success" for society in figuring out how to adapt to massive productivity gains.

The tech landscape, he observes, is "very hyper-competitive." While major players like Google (search), Amazon (cloud/retail), and Microsoft (Office/Windows) historically had distinct strongholds despite overlap, AI changes the game.

"As you get into AI, you know, you're all kind of in the same 'hey we'll help you do your job' type thing."

Gates believes this intense competition, despite high capital costs, "will be beneficial to users," forcing a "very, very fast" pace of innovation.

He hopes Microsoft can lead this charge. His involvement continues; he mentioned brainstorming with Microsoft's product groups on applications ranging from AI-assisted software development to AI in drug discovery, aiming to ensure "Microsoft is in in the echelon."

Bill Gates' reflections paint a picture of a 50-year journey marked by bold vision, constant adaptation, navigating existential threats, and ultimately, successful leadership transitions.

From the "crazy ideas" of 1975 and the years of "running scared" to the "great thrill" of seeing the company lead in the AI era under Satya Nadella, Microsoft's story is one of enduring impact.

As it enters its next chapter, Gates remains optimistic and involved, hoping the company he co-founded will continue to spearhead the software innovations that shape our future.