In a landmark moment, Steve Ballmer has overtaken Bill Gates to become the sixth-richest person in the world. This is the first time that the former CEO of Microsoft Corporation has surpassed the company’s co-founder in terms of wealth. The shift occurred on Monday as Microsoft’s shares soared to a new record high, marking a 21% increase for the year.
The role of Microsoft’s stock performance
Microsoft’s impressive stock performance, driven in part by its partnership with OpenAI, has been a significant factor in Ballmer’s financial ascent. The artificial intelligence boom has propelled the US stock market, and Microsoft has been one of its biggest beneficiaries.
According to the Bloomberg Billionaires Index, more than 90% of Ballmer’s $157.2 billion net worth is tied to Microsoft shares. In contrast, Gates’ $156.7 billion fortune is more diversified. About half of Gates’ wealth is managed through Cascade Investment, a vehicle funded by the sale of Microsoft stock and dividends. Cascade Investment also holds a $21 billion stake in Republic Services Inc., a leading waste-management company.
Philanthropy and wealth distribution
Bill Gates, 68, has been gradually reducing his net worth through extensive philanthropic efforts. Together with his ex-wife, Melinda French Gates, and close friend Warren Buffett, Gates has channeled billions into the Gates Foundation, which boasts a $75 billion endowment, making it one of the largest charitable organizations globally.
Since its inception over two decades ago, Gates and French Gates have donated nearly $60 billion from their personal fortunes. Recently, French Gates stepped down as co-chair of the foundation and received $12.5 billion for her own philanthropic initiatives.
In 2010, Gates, French Gates, and Buffett established the Giving Pledge, an initiative that encourages the world’s wealthiest individuals to commit to giving away the majority of their fortunes during their lifetimes or in their wills. Steve Ballmer, also 68, has not signed the Giving Pledge but engages in his own philanthropic activities, though not on the same scale as Gates.
Microsoft’s legacy and Ballmer’s investments
Bill Gates co-founded Microsoft with Paul Allen in 1975, leading the company until 2000. At that point, Steve Ballmer, one of Microsoft’s earliest employees, took over as CEO. Ballmer retired in 2014 but remained closely tied to the company, becoming its largest shareholder the same year.
In addition to his stake in Microsoft, Ballmer made headlines in 2014 when he purchased the NBA’s Los Angeles Clippers for $2 billion. Today, that investment is valued at approximately $4.6 billion.
Steve Ballmer’s rise to wealth, surpassing even Bill Gates, underscores the profound impact of Microsoft’s sustained success and the significant role of strategic investments. As Microsoft continues to thrive, both Ballmer and Gates remain influential figures, not just in the tech industry but also in their respective philanthropic endeavors.