Gates: Nadella’s Ascent to Microsoft’s Top Spot Was “Almost” a Miss
Bill Gates has revealed that Microsoft, under his watch and that of former CEO Steve Ballmer, almost missed the opportunity to appoint Satya Nadella as CEO. In a recent interview aired on Microsoft’s YouTube channel, the co-founder of the $2.9 trillion tech giant candidly shared this near miss, highlighting the pivotal role Nadella has played in transforming the company.
Gates, in conversation with Microsoft’s Vice Chair and President, Brad Smith, acknowledged the emotional weight of stepping down as CEO in 2000, a decision that was followed by two successors. “I’ll tear up on this, ’cause it meant a lot to me,” Gates said. “I’ve had two successors, and boy, do I feel lucky because as I went off to do the foundation work, the one thing that plagued me was: Was I going to see the company fade in terms of its excellence?”
A Close Call in Leadership Succession
After Steve Ballmer, the search for a new leader intensified, and Gates revealed that Microsoft was very close to overlooking Nadella. He told Smith that Nadella’s appointment has proven to be one of the best decisions in Microsoft’s history.
“The fact that Steve took us to new heights and the fact that through a process that almost made the wrong decision—although you and Steve and I never wavered from knowing Satya would be good — makes me feel so good,” Gates told Smith. “He’s been even better at navigating what even today remains one of the most complex CEO jobs in the world.”
Nadella’s Transformative Impact
Since Nadella became CEO, Microsoft’s share price has soared, and the company has become a key player in artificial intelligence (AI). Nadella’s strategic partnering and investment in OpenAI, led by Sam Altman, exemplify his forward-thinking leadership and vision for the company.
Empathetic Leadership vs. Early Microsoft Culture
Gates credited Nadella’s empathetic leadership style as a key factor in Microsoft’s success, contrasting it with the early hard-driving culture at Microsoft, which focused heavily on speed and technical prowess. “Early on we were speed nuts, staying all night at the office, thinking, ‘Oh, you’re five percent slower as a programmer? You don’t belong here.’ It was very hard-core,” Gates admitted. “Satya has a natural ability to work well with lots of people, to tell people they’re wrong in a nice way, and to let feedback come through to him more than I did.”
Humor as a Leadership Tool
Gates also reflected on the importance of humor in leadership, particularly during difficult periods. Recalling Microsoft’s antitrust trial in the early 2000s, Gates acknowledged that his sense of humor might not have been ideal for a courtroom setting — but it was essential for maintaining perspective.
“You’ve gotta have a sense of humour. There was that time when I was testifying, and during the break the clerk comes up to me and says, ‘Mr. Gates, I know people who have your scholarship. What are you doing in D.C.?'” Gates recalled. “All my complex testimony that day — the press covered that guy coming up to me. It made me seem at least a tiny bit more human than my image at the time was.”
Gates’ reflections underscore how close Microsoft came to missing out on Nadella’s leadership. But in the end, the decision to back him has paid off — shaping Microsoft into a powerhouse under Nadella’s leadership.
