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 Begin Reading

Table of Contents

About the Author

Copyright Page

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For S.S. and S.S.
 Prologue

This is a difficult book to write because it is about a difficult man—

one of the world’s richest men and one of the most deeply secretive.
Bill Gates did not respond to multiple interview requests for this
book, nor did anyone at the Gates Foundation ever agree to an
interview at any point in my reporting on the foundation. Even
before I published my first article on Gates in early 2020—or
established myself as a journalist who would report on the Gates
Foundation as a structure of power, not an unimpeachable charity—
the foundation refused to sit for any interviews. As I published my
investigations in the Nation, the British Medical Journal, and
Columbia Journalism Review, the Gates Foundation always assumed
a posture of nonengagement.
This silent treatment isn’t unique to me. The foundation, as a
rule, does not put itself or its leaders in a position where they might
be pushed to explain contradictions in its work or forced to answer
critical questions. Like any powerful organization, the $54 billion
Gates Foundation engages with the media on its own terms.
At the same time, because so many people and institutions today
depend on Gates’s charitable dollars, many sources are reluctant to
speak out for fear of professional consequences. You will find many
unnamed sources in this book, and you should not doubt the
reasons for their having requested anonymity. “It would be suicidal
for someone who wants a grant to come out and publicly criticize
the foundation,” Mark Kane, a former head of Gates’s vaccine work,
noted in 2008. “The Gates Foundation is very sensitive to PR.”
I also want to state up front why Melinda French Gates does not
appear on an equal footing with Bill Gates in this book. It’s because
she is not an equal to Bill Gates at the Bill & Melinda Gates
Foundation. I know this to be true because I’ve spoken to
foundation staff who have made clear that Bill Gates is the alpha and
the omega. And I know this because the foundation itself announced
it in 2021. Following the Gateses’ divorce, the foundation reported
that Melinda, not Bill, would step down from the foundation after a
two-year trial period if they could not agree to a power-sharing
arrangement. It is Bill Gates’s vast fortune from Microsoft that funds
the foundation, and it is Bill Gates who ultimately is in charge of how
the money is spent. This is not to say that Melinda doesn’t have a
very powerful voice or major impact on the foundation, and I do
profile her work throughout the book.
Finally, one note on language: Technically speaking, the Gates
Foundation is incorporated under tax rules as a private foundation. I
use this term throughout the book, but I also refer to the Gates
Foundation as a philanthropy and a charity.
 Introduction

You might not recognize the name “Paul Allen.”

Allen was a vital spark plug who helped ignite the corporate
engine of what became one of the most influential companies in the
world, Microsoft. And, for a time, he was both the business partner
and the best friend of one of the most powerful men ever to walk
the earth.
The name “William Henry Gates III” you also may not
immediately recognize. It’s a grand name befitting a man who comes
from generational wealth and privilege, a man born on third base.
Bill Gates’s mother came from a well-to-do banking family, and his
father was a prominent lawyer in Seattle. As Gates described his
upbringing, it was “Okay, this is the governor coming to dinner, or
here is this political campaign, let’s get involved in this.” The family’s
network of influence afforded Gates unusual opportunities growing
up—like serving as a page in both the Washington State legislature
and the U.S. Congress.
Paul Allen, by contrast, was a middle-class son of a librarian—his
family had to make sacrifices to get him into Seattle’s most elite
private school, Lakeside, where he befriended Bill Gates. “I was
thrown into a forty-eight-member class of the city’s elite: the sons of
bankers and businessmen, lawyers and UW professors. With
scattered exceptions, they were preppy kids who knew each other
from private grammar schools or the Seattle Tennis Club,” Allen, now
deceased, wrote in his autobiography.
 Lakeside’s wealth meant students there had special privileges,
like access to a computer—a rarity in the late 1960s. It was in the
school’s computer room that Allen formed an unlikely friendship with
Gates, two years his junior. “You could tell three things about Bill
Gates pretty quickly,” Allen remembers. “He was really smart. He
was really competitive; he wanted to show you how smart he was.
And he was really, really persistent.”
The boys’ passion for computers quickly turned entrepreneurial
as they recognized ways to monetize their burgeoning programming
skills. The work also proved competitive. When Allen secured a gig
working on a payroll program, he thought he could do it without
Gates’s help. Gates sent him an ominous message. “I said, ‘I think
you’re underestimating how hard this is. If you ask me to come
back, I am going to be totally in charge of this and anything you
ever ask me to do again,’” Gates recalled. Allen, in fact, did end up
needing help on the project, and as Gates explained, “It was just
more natural for me to be in charge.” With help from his father,
Gates went on to legally incorporate their growing computer
programming business, naming himself president and claiming a
share in the company’s earnings four times larger than the share he
gave Allen.
After the two boys graduated, they remained close but went in
different directions—Allen to the decidedly nonelite public school
Washington State University, Gates to Harvard. Allen’s unfocused
academic career quickly fizzled, and he recounts Gates pushing him
to move out East, where the two of them could turn their love of
computers into something special. Allen dropped out of college and
headed to Boston.
Allen describes himself as the “idea man”—he was constantly
bouncing business plans off Gates, who played the role of the boss,
and who usually shut Allen down. As Bill Gates remembers it, “We
were always talking about, ‘Could we stick a lot of microprocessors
together to do something powerful? Could we do a 360 emulator
using micro controllers? Could we do a time-sharing system where
lots of people could dial-in and get consumer information?’ A lot of
different ideas.”
After months of throwing the dart, Allen eventually hit upon a
bull’s-eye idea that Gates liked: writing a programming language for
one of the world’s first widely available home computers, the Altair.
Gates cold-called the company’s headquarters in New Mexico from
his Harvard dorm room and, in classic Gates fashion, bluffed that he
had new software for the Altair in development, nearly up and
running. The company invited him to fly out to demonstrate the
product. Gates and Allen spent a grueling eight weeks working to
pull the program together. When it came time to meet with Altair,
Paul Allen took the flight. Though he wasn’t the dead-eyed bullshit
artist Gates was, he at least looked like an adult. Gates, even well
into adulthood, was renowned for his boyish appearance, which
Microsoft later leaned into, promoting him as a whiz kid.
The business deal went through and brought enough success
that Gates eventually dropped out of Harvard to focus on his new
company. And it was his company, as Allen quickly learned. Even
though Allen had played a vital and central role in the Altair deal—he
also coined the name “Microsoft,” a portmanteau of microprocessor
and software—Gates immediately insisted on majority ownership,
taking 60 percent of the company. Allen remembers being taken
aback by his business partner’s assertion of power, but he didn’t
argue.
Gates, apparently realizing how easy that deal had been,
shamelessly brought Allen back into negotiations, where he claimed
an even larger share. “I’ve done most of the work … and I gave up a
lot to leave Harvard,” he said. “I deserve more than 60 percent.”
“How much more?”
“I was thinking 64–36.”
Allen writes that he didn’t have the heart to dicker with Gates,
but the deeper truth, as I read it, was that he couldn’t accept what
was really happening: his best friend was screwing him. “Later, after
our relationship changed, I wondered how Bill arrived at the
numbers he’d proposed that day. I tried to put myself in his shoes
and reconstruct his thinking, and I concluded that it was just this
simple: What’s the most I can get?… He might have argued that the
numbers reflected our contributions, but they also exposed the
differences between the son of a librarian and the son of a lawyer.
I’d been taught that a deal was a deal and your word was your
bond. Bill was more flexible.”
As Microsoft grew, eventually relocating to Seattle, Allen
continued to be an idea man. He recounts coming up with an
important work-around that enabled Microsoft software to work on
Apple computers, using a hardware device called the SoftCard. The
product opened up a broad new market for Microsoft and drove
millions of dollars in much-needed revenue in 1981. Allen, still
wanting to believe that he and Gates were partners and peers,
decided to use the success of SoftCard as leverage to press Gates
for a larger share of the company. If Gates could renegotiate their
percentages, why couldn’t he?
“I don’t ever want to talk about this again,” Gates told him,
shutting him down. “Do not bring it up.”
“In that moment something died for me,” Allen reflects. “I
thought that our partnership was based on fairness, but now I saw
that Bill’s self-interest overrode all other considerations. My partner
was out to grab as much of the pie as possible and hold on to it, and
that was something I could not accept.”
In a final ignominy, Allen, while recovering from treatment for the
non-Hodgkin’s lymphoma that eventually took his life, overheard
Gates discussing a plan to dilute his shares, further diminishing his
ownership stake in the company. After having strong-armed Allen to
reduce his share in the company from 50 percent to 40 percent and
then to 36 percent, Gates still wanted more.
“I replayed their dialogue in my mind while driving home,” Allen
said, “and it felt more and more heinous to me. I helped start the
company and was still an active member of management, though
limited by my illness, and now my partner and my colleague were
scheming to rip me off. It was mercenary opportunism, plain and
simple.”
It’s a devastating denouement in Allen’s autobiography, which,
though ostensibly an account of his unlikely path to becoming a
multibillionaire, could also be read as a crushing reflection on his
failed relationship with Bill Gates—a man he loved but who was
himself incapable of true friendship because he saw himself as
without equal. As Allen describes it, Gates’s truest self is a man
driven constantly to prove his superiority, “who wanted not only to
beat you but to crush you if he could.”
Dozens of books have been written about Gates, virtually all of
them in the 1990s and early 2000s, and they widely describe his
domineering spirit and his intensity. These accounts also profile his
brash, belligerent, arrogant, and bullying behavior—seemingly
toward everyone, whether friend or foe. Gates was not simply a
passionate man but also a deeply emotional man, often described as
childlike in his inability or unwillingness to control his temper. He
seemed to relish dressing down subordinates at Microsoft. In the
1990s, Playboy described his style as “management by
embarrassment—challenging employees and even leaving some in
tears.”
Paul Allen describes Gates’s constant “tirades,” “browbeating,”
and “personal verbal attacks” as not only acts of bullying but also a
major suck on corporate productivity. With his focus on negative
reinforcement, Gates became known for the famous catchphrase,
“That’s the stupidest fucking thing I’ve ever heard.”
Some might argue that this kind of narcissism and intensity are
required of an industry captain at the level Gates was operating in
the global economy. Whatever the rationalization, Gates ruled his
company with an iron fist—and also came to view the wider
computer industry as his dominion. And the body count quickly piled
up. “Bill would go to a very senior person at these other [computer
companies] and yell at them or tell them it had to be this way, or if
you don’t do this we’ll make sure our software doesn’t run on your
box. What do you do if you’re one of these … guys? You’re screwed.
You can’t have Microsoft not support your hardware so you better do
what they say,” recounts an early Microsoft employee, Scott
McGregor. As another software executive noted in the 1990s, “It’s
part of Bill’s strategy. You smash people. You either make them line
up or you smash them.”
Microsoft’s biggest business coup came in the early 1980s, when
IBM, then one of the world’s most powerful companies, asked the
comparatively tiny Seattle-based software upstart to write an
operating system for its personal computers. Most news outlets
reported this improbable deal as the product of nepotism. Gates’s
mother sat on the board of the United Way, one of the world’s most
prominent charities, alongside the head of IBM, a relationship that
may have helped grease the wheels for her son. Gates’s father had
also been helping his son’s software company over the years; his law
firm’s largest client eventually became Microsoft.
The problem with the IBM deal was that Microsoft didn’t have an
operating system. So, it found a firm that did and acquired the
software. IBM’s market power made the newly minted “MS-DOS” the
industry standard, laying the groundwork for Microsoft’s multibillion-
dollar dominion over the computer industry. Decades later, most
computers around the world still run on Microsoft’s operating
system, now called Windows. Bill Gates had turned his corporate
mantra—“A computer on every desk and in every home running
Microsoft software”—into a reality.
What this episode shows is that if there is a genius to Gates, it is
not as an innovator or inventor or technologist. Rather, it’s as a
businessman; it’s in his ability to understand the business
dimensions of technology and innovation, to network and negotiate,
and to stop at nothing until he controls the way it all works.
Over time, Bill Gates became one of the most feared industry
captains. As Microsoft grew and grew, it began expanding beyond
the narrow confines of computer software. It considered buying
Ticketmaster, the monopolistic force selling tickets to concerts and
sporting events. Then Gates made a high-profile appearance at a
newspaper industry conference, sending shock waves around
potential media acquisitions. (Microsoft went on to launch Slate
magazine and MSNBC, from which it has since divested.) “Everybody
in the communications business is paranoid about Microsoft,
including me,” media tycoon Rupert Murdoch said at the time.
At a point, Microsoft began to seem like less a monopoly and
more an empire, viewed by businesses the way the U.S. military is
by many governments. With the simple maneuvering of an aircraft
carrier in one direction or the other, the Pentagon can quietly send a
powerful message: Your future is in our hands.
“I’ve competed against Microsoft for years, but I never quite
appreciated how big Microsoft has become, not just as a company,
but as a brand and as part of the national consciousness,” Eric
Schmidt, then an executive at Novell (and later the CEO of Google),
noted in 1998. “It’s the products, the Microsoft marketing
juggernaut, Bill Gates’s wealth, all those magazine cover stories. It’s
everything.”
The Microsoft juggernaut, however, was not impregnable. The
company made a series of major missteps under Gates’s leadership,
failing to recognize the potential existential threat that the World
Wide Web posed to Microsoft’s market share. To play catch-up,
Microsoft clumsily hatched a plan to bury the dial-up internet service
provider America Online, in which Paul Allen personally had a large
investment stake. Gates casually told an acquaintance of Allen’s,
“Why would Paul want to compete with us? I’m just going … to keep
losing money every year until we have the number-one market share
in online. How does it make sense to compete with that?” Allen saw
the writing on the wall and divested.
Gates and Microsoft also aimed their attention at internet
browsers, dominated by Netscape. Microsoft put the screws to
computer manufacturers, pushing them to sell units preloaded with
its own browser, Internet Explorer, alongside its operating system,
Microsoft Windows.
 This proved the beginning of the end for Gates at Microsoft. A
high-profile antitrust court case followed, with the Department of
Justice accusing the company in 1998 of exercising monopoly power.
In an inexplicable act of hubris, Gates decided that he could
personally outwit government prosecutors, agreeing to sit for a
videotaped deposition—a deeply embarrassing performance that
proved damaging to his company. For days, Gates played the role of
an arrogant Mr. Know-It-All, tediously rearranging every question he
was asked—he even debated the definition of the word definition—
and constantly seeking to diminish the intelligence of the lawyers
opposing him. (Videos of the deposition are available on YouTube.) It
was a prime-time showcase of Bill Gates’s capacity for evasion and
unhinged god complex. Paul Allen—and the rest of the world—
watched Gates’s public dissembling with a mixture of fascination and
horror.
“Anti-Microsoft sentiment became widespread and intense, and it
cut Bill to the core,” Allen noted. “He’d been the darling of the
business press, the craft entrepreneur and technology genius. Now
the media portrayed him as a bully who’d bent the rules and
probably broken them.”
The courts ruled against Microsoft in 1999, declaring it a
monopoly that was stifling innovation, but many of the stiffest
penalties, including a directive to break up the company, were
overturned on appeal. Microsoft nevertheless continued to face high-
profile legal challenges, from competitors and the European Union,
that further cemented the company’s toxic reputation.
Suddenly, people were throwing pies in Bill Gates’s face. The
Simpsons was ridiculing his monopoly-nerd overcompensation
complex. Both Bill Gates and Microsoft needed a change. The Gates
Foundation was born.
Bill Gates had already been dabbling in philanthropy throughout
the 1990s, but as the antitrust legal activity escalated into a full-
scale public relations crisis, he very rapidly scaled up his charitable
giving by several orders of magnitude. By the end of 2000, he had
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