Microsoft was founded by Bill Gates and Paul Allen in 1975.
The company began after Gates and Allen developed a version of the BASIC programming language for the Altair 8800, an early microcomputer introduced by Micro Instrumentation and Telemetry Systems. Their software demonstrated that personal computers could become useful platforms for programming rather than merely electronic hobby projects.
Microsoft was originally established in Albuquerque, New Mexico, where MITS was based. The company later moved its headquarters to the Seattle region, near the founders’ home state of Washington. Its early business centered on licensing software to computer manufacturers, a model that allowed Microsoft programs to reach many users without Microsoft building every computer itself.
Microsoft’s later market-capitalization growth was driven by products such as MS-DOS, Windows, Office, enterprise software, cloud computing, and developer tools. A frequent confusion is the date 1981, when Microsoft was incorporated in its current corporate form; the company’s founding date is conventionally given as 1975. Gates and Allen had already begun their partnership before Microsoft, working together on earlier computing projects.