Today, Microsoft is almost unimaginable without Satya Nadella. His leadership at the Seattle-based software giant has been transformative, but, according to Bill Gates, Nadella’s ascension to the top job was nearly derailed.
In a recent interview aired on Microsoft’s YouTube channel, Gates candidly admitted that despite support from himself and former CEO Steve Ballmer, Nadella’s path to becoming CEO faced significant challenges. Looking back, Gates now considers the choice of Nadella as one of the best decisions in Microsoft’s history.
Since Nadella’s appointment, Microsoft has not only seen its share price increase, but Nadella also spearheaded the company’s move into artificial intelligence (AI). This was achieved through partnerships and, most notably, a major investment in OpenAI, led by Sam Altman.
Gates, the co-founder of the $2.9 trillion tech giant, spoke with Microsoft’s Vice Chair and President, Brad Smith. He recalled the emotional weight of stepping down as CEO in 2000. “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?”
Steve Ballmer, who succeeded Gates as CEO, oversaw a period of growth for Microsoft. But when Ballmer announced his retirement in 2013, the search for a new leader sparked speculation. Gates revealed the possibility that Microsoft may have overlooked Nadella for the role – a decision that could have drastically changed the company’s future.
“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.”
Since his appointment in 2014, Nadella has guided Microsoft to record highs, transforming it into a dominant player in AI and cloud computing. Under his leadership, Microsoft’s stock price has soared, and the company has maintained a competitive edge in the digital world.
Gates noted Nadella’s empathetic leadership style as a key factor in Microsoft’s success. He contrasted this with the early, high-pressure culture at Microsoft, which prioritized speed and technical skill. “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 stated. “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.”
Gates also reflected on the importance of humor in leadership, particularly during challenging times. Referring to Microsoft’s antitrust trial in the early 2000s, Gates admitted that his sense of humor might not have been ideal for a courtroom setting, but it was critical 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 highlight how close Microsoft came to missing out on Nadella’s leadership. In the end, the decision to support him has paid off, shaping Microsoft into the powerhouse it is today under Nadella’s leadership.
