Microsoft celebrated its 50th anniversary in April 2025. To mark the occasion, co-founder Bill Gates joined a special conversation with current CEO Satya Nadella and former CEO Steve Ballmer at the company’s headquarters in Redmond, Washington.
The ‘Washington Mistake’ Bill Gates Regrets
During the event, Gates shared a key mistake he made in the early years of Microsoft. He admitted that he didn’t pay enough attention to government relations when the company was just starting out.
“I was pretty naive about not engaging in Washington, DC, as soon as I should have,” Gates said in a podcast featuring all three CEOs. He said he would warn his younger self to be more aware of how the government works.
How That Mistake Led to a Major Legal Battle
Gates’ lack of attention to government matters led to a big problem in the 1990s. The U.S. Department of Justice took Microsoft to court, claiming it was becoming a monopoly.
In 2000, a court ruled that Microsoft had broken antitrust laws. At first, the company was ordered to split in two, but that decision was later overturned on appeal. Still, it was a difficult time for the company and a major lesson for Gates.
Building the Right Team Was Also a Challenge
Government issues weren’t Gates’ only early mistake. He also talked about team building during Microsoft’s early years.
“I thought that if someone was a great engineer, they’d be good at everything,” he said. “That turned out to be wrong.” Gates later learned that building strong teams required people with different skills—not just technical knowledge.
Smarts Aren’t Everything: A Lesson for Young Leaders
Gates has spoken before about the lessons he’s learned. In a 2017 Reddit session, he said he once believed being smart was the most important thing. Over time, he realized success also comes from working with a variety of talented people.
Microsoft Today: Stronger Than Ever
Despite these early mistakes, Microsoft has become one of the most powerful tech companies in the world. Thanks to the leadership of Gates, Ballmer, and now Satya Nadella, Microsoft continues to grow and innovate.
Gates’ honesty about his early mistakes shows how learning and adapting are key parts of long-term success.
