Founded in 1975 by Bill Gates and Paul Allen, the company began by developing an interpreter—software that translates entered commands into a language a computer can execute—for the Altair 8800, the first commercially successful PC. A licensing deal with IBM in 1980 propelled Microsoft to dominate the PC operating system market with MS-DOS. It made personal computing more accessible with the release of the Windows graphical shell atop MS-DOS in 1985 and set the digital workplace standard with the release of Office for Windows in 1990.
Microsoft began focusing on cloud computing with Azure, which, as of 2025, provides back-end infrastructure to about 20% of the internet. Since Satya Nadella became CEO in 2014, partnerships in AI and acquisitions in video gaming have further expanded Microsoft’s impact.