Bill Gates Says He Feared Microsoft Would Struggle Without Him—Now It's Worth $3 Trillion And Thriving

Bill Gates once expressed a deep concern about Microsoft’s future MSFT when he stepped down as CEO in 2000. He worried the company might lose its famed standard of excellence and that the chance to guide it back might one day be missed. 

Even as he moved toward focusing on his philanthropic work, those early misgivings lingered in his mind. Despite the anxiety, Microsoft has charted an impressive course over the years.

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Leadership That Transformed a Giant

Gates' fears eventually proved unnecessary. Steve Ballmer, who steered the company from 2000 until 2014, pushed Microsoft to unprecedented heights, setting the stage for the current era under Satya Nadella. He has been at the helm since 2014.

A look at the numbers reveals the scale of the transformation. According to Statmuse, Microsoft’s market capitalization reached $3.1 trillion on Dec. 31. Moreover, Microsoft's annual reports show that the company pulled in over $245 billion in annual revenue for fiscal 2024, a 16% jump from the previous year.

These milestones paint a picture of a company that met and exceeded early expectations. Gates hasn’t entirely stepped away. In a Wall Street Journal interview on Jan. 26, he said, "I love doing product reviews, and [Satya Nadella] brings me in to do that." He added that while that's only 15% of his time, it helps him stay up to date, particularly in artificial intelligence, where Microsoft has made major moves. 

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This ongoing involvement allows him to harness the company’s vast resources to support the philanthropic foundation he co-founded with his ex-wife, Melinda French Gates. Though he left the CEO chair in 2000 and the board in 2020, his role as an advisor remains influential in shaping the company’s future.

Adding a dose of counterbalance to the success story, some industry experts see potential challenges ahead. Gil Luria, senior analyst at D.A. Davidson, said that Microsoft’s hefty investment in artificial intelligence—an $80 billion initiative scheduled for 2025—coupled with economic uncertainties, could pose risks, Reuters reported.

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According to MarketWatch, Luria's Neutral rating with a $425 target reflects the idea that while Microsoft’s track record is impressive, the optimal moment for investors might still be ahead.

On Jan. 29, Microsoft's stock fell 4.5% in after-hours trading after the company forecast slower growth in its Azure cloud computing division and faced concerns over rising AI-related expenditures, according to Reuters. 

The company's capital expenditures reached $22.6 billion, exceeding analyst expectations and raising questions about near-term financial returns. Additionally, growing competition from lower-cost AI models developed by Chinese firms has fueled concerns about Microsoft's ability to monetize its AI investments effectively.

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