What is Bill Gates' net worth and where did it all begin? Well, when it comes to technology and innovation, Gates is a genius.
Today, he is one of the richest people in the world, primarily thanks to his stake in Microsoft, which was, at one point, the most influential tech firm on Earth. Gates co-founded Microsoft Corporation in 1975 with Paul Allen, at a key point in technology revolution.
However, Gates himself stepped back from the day-to-day running of the company some time ago. Today, he is known for his philanthropic efforts through the Bill & Melinda Gates Foundation.
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According to the Bloomberg Billionaire Index, Bill Gates has a total net worth of $162 billion, making him the sixth richest person in the world – but he often drops in and out of the top five. Taking the reins above him are Elon Musk, Jeff Bezos, Bernard Arnault, Mark Zuckerberg and Larry Ellison.
Here we look at how Bill Gates managed to build his fortune and the factors that contribute to his net wealth today.
The story of Bill Gates and Microsoft
Bill Gates is widely regarded as one of the most successful entrepreneurs in modern history. Under his stewardship, Microsoft became a technology empire that revolutionised the way people use computers. Its software and hardware products have transformed the technology industry, streamlining processes, connecting people around the world, and enhancing the productivity of businesses and individuals.
Gates was born in Seattle, Washington, in 1955. As a youngster he showed an interest in technology and computers, even though the industry was still in its early stages.
By the age of 13, he’d taught himself how to program his first computer and went on to attend Harvard University. Despite making it into the prestigious university, Gates dropped out after two years to pursue his passion – computers and technology.
Gates co-founded Microsoft in 1975 with his childhood friend, Paul Allen, and they initially focused on producing software for personal computers (PCs).
Their big breakthrough came in 1980. That year, Microsoft signed a deal with IBM to provide the operating system for its new line of personal computers, MS-DOS – a game-changer for Microsoft. It cemented the firm’s position as a major player in the emerging computer industry.
Over the next five years, with the cash from IBM flowing in, Microsoft continued to innovate and expand its product offerings.
The first version of Windows, which would become its flagship operating system for personal computers was put on sale in 1985.
In the years that followed, Microsoft released a series of highly successful products, including Microsoft Office, Internet Explorer and the Xbox gaming console.
From the early days of MS-DOS and Windows to more recent successes like the Xbox and Azure, Microsoft has always been willing to push the boundaries and try new things.
The story behind Bill Gates’ net worth
As the majority shareholder of Microsoft, Gates' fortune rose with the company’s success. In fact, he was the world's richest person for several years in a row during the 1990s and early 2000s.
One of the key factors that contributed to Gates' success was his ability to envision the future of technology and anticipate the needs of consumers. He could see the potential of personal computers when other companies were only just getting to grips with large mainframe servers for businesses. His vision helped him create products that would appeal to a broad range of users.
But with success came criticism. Microsoft was accused of engaging in anti-competitive practices, and the company was the subject of a high-profile antitrust lawsuit in the late 1990s.
The lawsuit alleged that Microsoft used its dominant market position to stifle competition and maintain a monopoly in the computer industry. While Microsoft ultimately settled the case, the controversy surrounding the company and its founders lingered for some time.
Gates made his money through his visionary leadership and innovative approach to the technology industry. He built Microsoft into a global technology empire that has changed the world. While not without controversy, there is no denying that Gates' legacy will continue to inspire and shape the technology industry's future for years to come, both with Microsoft and his charitable foundation.
In an interview with CNBC’s Make It on 11 September 2024, Gates revealed that his meaning of success evolved overtime. He said in his Microsoft days, when he was CEO, everything he did was Microsoft focused. From stepping down as CEO in 2000 and removing himself from the board in 2020, he now focuses on empowering people and ‘adding net value’ to the world, through his charitable work.
What does Bill Gates do with his wealth
Gates is known for being selfless, which is the underlying reason for his desire to give away most of his wealth. He and his ex-wife founded the Bill & Melinda Gates Foundation, which is a charity to help fight poverty, inequity and disease around the world. According to Forbes, Gates has donated at least $35.8 billion of his Microsoft stake to the foundation.
Other billionaires have also donated to the Gates Foundation, including Warren Buffett, who has donated more than $36 billion since 2006.
In 2010, Gates launched the Giving Pledge, which he and other wealthy individuals have signed up to with the aim of distributing a majority of their wealth to good causes. American novelist and ex-wife of Jeff Bezos, MacKenzie Scott, has donated more than $2 billion in the past year. Indian writer and author Rohini Nilekani donated $12.5 million to the charity.
Gates also spends his time travelling and learning about new innovations in different countries. He visited India in March for Anant Ambani’s pre-wedding bash (the son of billionaire Mukesh Ambani). On his almost week-long stay, Gates met with India’s prime minister Narendra Modi and some other members of the cabinet. Gates told The Times of India that he discussed with the PM how his foundation can carry on supporting India’s technology and innovation.
The entrepreneur has also announced that he will be publishing a memoir in 2025, which will give readers an insight into his life as a young entrepreneur in his twenties before he was in the public eye.
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