Key date: March 1975
Bill Gates co-founded Microsoft in April 1975, initially as a partnership focused on adapting the BASIC interpreter for the Altair 8800 microcomputer. The formal incorporation followed later that year in New Mexico. This answer-first summary distills the founding moment; deeper context below explains the product, the partners, and the operating environment that made Microsoft possible.
1975: Founding and the Altair BASIC agreement
In 1975, Gates and high-school friend Paul Allen saw an article about the Altair 8800 and recognized an opportunity: providing a standardized programming language to a new class of hobbyist computer. They secured a licensing deal with MITS, the maker of Altair, to deliver a working BASIC interpreter. This foundational contract set Microsoft’s initial product and direction. In March 1975, Gates wrote an open letter to hobbyists emphasizing the importance of paying for software, signaling early clarity around monetization.
Pre-Microsoft efforts and the name
Before the Microsoft name existed, Gates and Allen explored partnerships with companies such as Data General. The name "Micro-Soft" was conceived to reflect microcomputers and software. By the end of 1975, the company had a product—Altair BASIC—and a working business model, though it remained a small partnership operation.
Incorporation and early operations
In 1976, Gates and Allen formalized Microsoft by incorporating in Albuquerque, New Mexico. They continued to build on the Altair BASIC success while pursuing additional programming languages and tools. The partnership with MITS provided revenue and visibility; however, it also contained early tensions over licensing and ownership. In 1977, Microsoft shifted its base to Bellevue, Washington, reflecting both personal ties and access to talent, setting the stage for the company’s long-term geographic center.
Notable details and timeline
Microsoft’s early identity was tightly coupled to the microcomputer revolution. Gates’ perspective on software ownership—articulated in the 1975 open letter—became a cultural touchpoint. Productive tension with partners like MITS helped clarify business practices, and the incorporation steps in 1976 brought legal clarity. The company began with a programming languages focus rather than an operating system, a distinction that would change with IBM PC DOS in the early 1980s.
| Attribute | Verified Detail | Source Type |
|---|---|---|
| Company founding date | April 1975 (partnership); incorporated 1976 | Company history records |
| Founders | Bill Gates, Paul Allen | Public biographies and interviews |
| First major product | Altair BASIC interpreter | Microsoft and MITS records |
| Early base of operations | Albuquerque, New Mexico (1976); moved to Bellevue, Washington (1977) | Business registration and relocation accounts |
| Key early partner | MITS (Micro Instrumentation and Telemetry Systems) | Historical business agreements |
Essential comparisons: Microsoft’s 1975 origins versus later milestones
- 1975: Product and partnership —Altair BASIC under a licensing agreement with MITS; not yet incorporated as Microsoft.
- 1976: Incorporation —Formal legal entity in New Mexico; clarified ownership and governance.
- 1977: Relocation —Shift to Bellevue, Washington; early platform for sustained growth.
- 1980–1981: IBM PC DOS — Licensing MS-DOS to IBM; transition from languages to operating systems as a core business.
- 1985: Windows 1.0 —First major graphical environment, years after founding.
Common questions and clarifications
Some ask whether Gates created Microsoft alone; the answer is no—Paul Allen was co-founder and instrumental in the earliest phases. Others wonder if the first incorporation was in New Mexico or Washington; it was New Mexico in 1976, with Washington incorporation occurring later for operational reasons. Clarifying these points helps distinguish founding events from later legal and operational shifts.
Why this timeline matters
Understanding when Bill Gates created Microsoft—and how the company evolved from an Altair BASIC partnership to a global platform—highlights the interplay of product timing, partnership dynamics, and business formalization. These early decisions shaped Microsoft’s role in the personal computing industry and continue to inform how the company approaches platform strategy and developer relations.