Microsoft was founded in 1975 by Bill Gates and Paul Allen and became a major market-cap leader.
The two programmers established Microsoft after developing and licensing a version of the BASIC programming language for the Altair 8800. The company’s name combined “microcomputer” and “software,” reflecting its early focus.
Microsoft later became dominant in personal-computer software through MS-DOS and Windows. It expanded into productivity software, business technology, gaming through Xbox, and cloud computing through Azure. Those businesses helped make Microsoft one of the world’s most valuable public companies.
Microsoft’s market capitalization is separate from its revenue and profit. It is determined by the value investors assign to all outstanding shares. The company’s leadership also changed over time: Gates was succeeded as chief executive by Steve Ballmer in 2000, and Satya Nadella became CEO in 2014.