Microsoft Corporation was founded in 1975 by Bill Gates and Paul Allen.
The two childhood friends created Microsoft after seeing the Altair 8800, an early personal computer sold by Micro Instrumentation and Telemetry Systems. They developed and marketed a version of the BASIC programming language for the machine, giving the new company its first major opportunity. The name Microsoft combines “microcomputer” and “software.”
Microsoft’s later agreement to provide an operating system for IBM’s personal computer helped transform it into a dominant software company. Its Windows operating system and Office productivity suite became central to business and home computing worldwide. Paul Allen left day-to-day work at Microsoft in 1983 but remained a significant shareholder. A common mistake is naming Steve Ballmer as a co-founder; Ballmer joined shortly after the company began and later became its chief executive.