"In ninth grade," Gates recalls over dinner one night, "I came up with a new form of rebellion. I hadn't been getting good grades, but I decided to get all A's without taking a book home. I didn't go to math class, because I knew enough and had read ahead, and I placed within the top 10 people in the nation on an aptitude exam. That established my independence and taught me I didn't need to rebel anymore." By 10th grade he was teaching computers and writing a program that handled class scheduling, which had a secret function that placed him in classes with the right girls.
His best friend was Kent Evans, son of a Unitarian minister. "We read FORTUNE together; we were going to conquer the world," says Gates. "I still remember his phone number." Together with Paul Allen, they formed the official-sounding Lakeside Programmers Group and got a job writing a payroll system for a local firm. A furious argument, the first of many, ensued when Allen tried to take over the work himself. But he soon realized he needed the tireless Gates back to do the coding. "O.K., but I'm in charge," Gates told him, "and I'll get used to being in charge, and it'll be hard to deal with me from now on unless I'm in charge." He was right.
To relieve the pressures of programming, Evans took up mountain climbing. One day Gates got a call from the headmaster: Evans had been killed in a fall. "I had never thought of people dying," Gates says. There is a flicker of emotion. "At the service, I was supposed to speak, but I couldn't get up. For two weeks I couldn't do anything at all."
After that he became even closer to Paul Allen. They learned an artificial-intelligence language together and found odd jobs as programmers. "We were true partners," Gates says. "We'd talk for hours every day." After Gates went off to Harvard, Allen drove his rattletrap Chrysler cross-country to continue their collaboration. He eventually persuaded Gates to become that university's most famous modern dropout in order to start a software company, which they initially dubbed Micro-Soft (after considering the name Allen & Gates Inc.), to write versions of BASIC for the first personal computers. It was an intense relationship: Gates the workaholic code writer and competitor, Allen the dreamy visionary.
Over the years they would have ferocious fights, and Allen would, after a Hodgkin's disease scare, quit the company and become estranged. But Gates worked hard to repair the relationship and eventually lured Allen, who is now one of the country's biggest high-tech venture-capital investors (and owner of the Portland Trail Blazers), back onto the Microsoft board. "We like to talk about how the fantasies we had as kids actually came true," Gates says. Now, facing their old classroom building at Lakeside is the modern brick Allen/Gates Science Center. (Gates lost the coin toss.)
Steve Ballmer, big and balding, is bouncing around a Microsoft conference room with the spirit of the Harvard football-team manager he once was. "Bill lived down the hall from me at Harvard sophomore year," he says. "He'd play poker until 6 in the morning, then I'd run into him at breakfast and discuss applied mathematics." They took graduate-level math and economics courses together, but Gates had an odd approach toward his classes: he would skip the lectures of those he was taking and audit the lectures of those he wasn't, then spend the period before each exam cramming. "He's the smartest guy I've ever met," says Ballmer, 40, continuing the unbroken sequence of people who make that point early in an interview.
Ballmer nurtured the social side of Gates, getting him to join one of the college's eating clubs (at his initiation Gates gave a drunken disquisition on an artificial-intelligence machine), playing the video game Pong at hamburger joints and later wandering with him to places like the old Studio 54 during visits to New York City. "He was eccentric but charismatic," says Ballmer.
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