1970s microcomputer and paper-tape reader on a metal workbench.

Paul Allen: Biography of Microsoft’s Co-Founder

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In February 1983, Paul Allen stepped away from active management at Microsoft, the company he had founded with Bill Gates less than eight years earlier. Microsoft was already an important supplier of software for personal computers. But Allen had been diagnosed with Hodgkin disease, and his role in the growing business was changing.

Leaving daily management did not end his connection to Microsoft. Nor did it end his work in technology. Over the following decades, Allen backed research laboratories, bought professional sports teams, supported cultural institutions and financed ambitious engineering projects. Some ventures closed or struggled financially; others endured. His story extends well beyond Microsoft’s founding.

A Quick Look at the Life of Paul Allen

Biography Summary

Paul Gardner Allen (1953–2018) was an American technology entrepreneur, investor and philanthropist. He co-founded Microsoft with Bill Gates in 1975 and later pursued investments, professional sports ownership and organized support for research and culture. His sister Jody Allen was an important collaborator in many of his later activities.

Profile

Full Name: Paul Gardner Allen

Born: January 21, 1953

Died: October 15, 2018, aged 65

Birthplace: Seattle, Washington, United States

Education: Lakeside School; attended Washington State University

Best Known For: Co-founding Microsoft with Bill Gates

Major Roles: Microsoft co-founder and former executive vice president; investor, philanthropist and professional sports owner

Selected Institutions and Projects: Vulcan; Portland Trail Blazers; Seattle Seahawks; Experience Music Project; Allen Institute for Brain Science; Allen Institute for Artificial Intelligence; SpaceShipOne

Lakeside School and the Partnership with Bill Gates

Paul Gardner Allen was born in Seattle on January 21, 1953. His father, Kenneth Samuel Allen, was an associate director of libraries at the University of Washington, and his mother, Edna Faye Gardner Allen, was a schoolteacher. Seattle remained a center of Allen’s activities throughout his life.

At Lakeside School in the late 1960s, Allen met Bill Gates, a younger student who shared his interest in computing. A teletype connection to a remote computer service gave the students practical experience in programming. That access helped form a working partnership that continued beyond their school years.

Gates later credited Allen with recognizing the potential of increasingly powerful computer chips. Remembering his friend in 2018, Gates wrote, “Paul foresaw that computers would change the world.”

Their early attempts at business were not all successful. Allen and Gates worked on Traf-O-Data, a venture intended to process traffic-counting information. Gates later described its commercial failure as instructive. Allen also enrolled at Washington State University in 1971 but left without graduating; he subsequently worked for Honeywell in the Boston area, near where Gates was attending Harvard.

An Altair Computer Opens the Door to Microsoft

The MITS Altair 8800 appeared on the cover of Popular Electronics in January 1975. The new microcomputer offered Allen and Gates a commercial opening: software that would let its users program in BASIC.

Allen helped prepare an emulator so that the BASIC interpreter could be developed without initially having the Altair itself. He also took part in demonstrating the software to MITS. Monte Davidoff contributed mathematical routines to the early interpreter, making the project a wider programming collaboration.

Allen joined MITS in Albuquerque as director of software in 1975. A licensing agreement for BASIC between Microsoft and MITS was dated July 22 that year. Allen and Gates had founded the business that became Microsoft, turning their programming work into a commercial enterprise.

The company’s formal identity developed in stages. The name Micro-Soft appeared in 1975, the trade name was registered in 1976, and Microsoft incorporated in 1981. Between those milestones, the company relocated its headquarters from Albuquerque to Bellevue, Washington, in 1979.

The IBM PC Changes Microsoft’s Scale

Microsoft’s work expanded from programming languages into operating-system software. When the company incorporated in June 1981, Gates was chairman and president and Allen was executive vice president. On August 12, IBM announced its personal computer with Microsoft’s DOS software, a major commercial milestone for the young business.

DOS had a history beyond the two Microsoft founders. Its predecessor, 86-DOS, was written by Tim Paterson at Seattle Computer Products. Microsoft licensed and then purchased the technology, and Paterson worked on it at Microsoft. Allen contributed to the company’s software development, but he did not originate DOS alone.

The Computer History Museum identifies Allen among a team of Microsoft programmers who worked on the expanded DOS 2.0 version released in 1983. The operating-system business reflected contributions from multiple people and companies at a time when personal computing was growing rapidly.

Illness, Departure and Disagreement with Gates

Allen developed Hodgkin disease in 1982 and resigned from active Microsoft management on February 18, 1983. His formal ties continued: he remained a Microsoft director until 2000 and then moved to a senior strategy adviser role.

Years later, Allen offered a more complicated account of his departure. In his 2011 memoir Idea Man, he said that the partnership’s equity arrangements had disadvantaged him. He also alleged that, while he was ill, he overheard Gates and Steve Ballmer discussing how to reduce his ownership interest. Gates responded that he remembered many of the events differently. Allen’s account does not establish that a proposed dilution of his stake was carried out.

In an April 2011 interview with WIRED, Allen described partnership tensions as one factor in his decision to leave. Even so, he said of Gates, “I consider us friends.”

A Wider Portfolio, with Uneven Results

After leaving Microsoft’s daily operations, Allen pursued interests in technology, telecommunications, media, real estate and other fields. Vulcan became a vehicle for his investments and civic projects, developed in collaboration with his sister Jody Allen.

In the 1990s, he invested in ventures including Starwave and supported Interval Research, a laboratory established to explore future directions in computing. The experimental approach faced a commercial test. By the late 1990s, Interval was under pressure to turn its research into products, and its research operation closed in 2000.

Charter Communications brought another setback. Allen was a major investor in the cable company, which underwent Chapter 11 restructuring in 2009. When Charter emerged on November 30, it reported eliminating approximately $8 billion in corporate debt. That amount was the company’s debt reduction, not a documented figure for Allen’s personal losses.

Other investments had a more enduring local presence. Vulcan’s real-estate activities contributed to the redevelopment of Seattle’s South Lake Union area, alongside other public and private participants. Allen’s investments produced a mix of lasting projects and commercial disappointments.

Professional Sports and a Museum for Music

Allen bought the NBA’s Portland Trail Blazers in 1988 and acquired the NFL’s Seattle Seahawks in 1997, when the franchise’s future in Seattle was uncertain. Keeping the Seahawks in the city involved more than ownership: voters approved a stadium-funding referendum in 1997, and the new stadium opened in 2002.

During Allen’s ownership, the Seahawks won their first Super Bowl in February 2014, following the 2013 season. The championship belonged to the team’s players, coaches and wider organization. Allen also held an ownership interest in Seattle Sounders FC.

His support for culture took a different form. An interest in Jimi Hendrix helped prompt the Experience Music Project, which opened at Seattle Center on June 23, 2000. The museum occupied a Frank Gehry-designed building and later became the Museum of Pop Culture, known as MoPOP. Jody Allen and other leaders helped develop the institution.

From Investments to Organized Scientific Research

Allen and Jody Allen established the Paul G. Allen Family Foundation in 1988, supporting community, arts and environmental work. A more specialized scientific commitment followed in September 2003, when Allen pledged an initial $100 million to establish the Allen Institute for Brain Science and support publicly accessible brain-mapping resources.

Allen provided the founding support, while scientists and collaborators carried out the research. The institute grew around scientific teams and shared resources.

In 2010, Allen joined the Giving Pledge and stated his intention to devote most of his fortune to philanthropy. His letter explained his priorities, including scientific collaboration and environmental concerns. He wrote, “Our net worth is ultimately defined not by dollars but rather by how well we serve others.” The pledge expressed a commitment, not a total of funds already distributed.

In 2014, Allen founded the Allen Institute for Artificial Intelligence, now known as Ai2, extending his institutional support to AI research. He also announced a reported $100 million commitment to address Ebola in West Africa. That amount was a pledge, not a confirmed total paid out during the year.

SpaceShipOne, Stratolaunch and Maritime Exploration

Allen also financed projects that depended on specialized engineering and exploration teams. He supported SpaceShipOne, a privately developed spacecraft designed by Burt Rutan and Scaled Composites. Pilots including Michael Melvill and Brian Binnie carried out the flights, and the project won the $10 million Ansari X Prize on October 4, 2004.

He pursued another aerospace project in 2011, agreeing to advance the Stratolaunch concept with Rutan and Scaled Composites. It involved building an unusually large carrier aircraft for proposed air-launch operations. The aircraft first flew on April 13, 2019, after Allen’s death.

Allen’s support extended to marine archaeology. In August 2017, a research expedition aboard the Petrel located wreckage of the USS Indianapolis. Earlier historical research helped narrow the search area, and expedition specialists and crew carried out the discovery.

His Final Illness and the Work That Continued

Allen was diagnosed with non-Hodgkin lymphoma in 2009, a distinct illness from the Hodgkin disease he had experienced in 1982. He disclosed a recurrence in 2018 and died in Seattle on October 15 of that year, aged 65, from complications of non-Hodgkin lymphoma.

Many organizations he had supported continued operating after his death. In November 2022, Christie’s reported that works from the Paul G. Allen Collection had sold for approximately $1.62 billion. Christie’s stated that the estate intended the proceeds for philanthropy. In July 2025, the Paul G. Allen Family Foundation was renamed Allen Family Philanthropies.

Microsoft was Allen’s most consequential early business venture, but it was only one part of his career. He helped launch software for an emerging computer market, then committed resources to ventures with sharply different outcomes. The science, sports and cultural institutions he supported depended on the work of many people—and some continued long after he was gone.

Timeline

These milestones highlight Paul Allen’s early partnership, Microsoft career, later projects and selected events after his death.

Timeline.

1953

Paul Gardner Allen is born in Seattle on January 21.

Late 1960s

Allen and Bill Gates meet through computing activities at Lakeside School.

1971–1974

Allen attends Washington State University and later works for Honeywell in the Boston area.

1975

The Altair 8800 creates a market for BASIC software. Allen and Gates found the business that becomes Microsoft, and Allen joins MITS. A BASIC licensing agreement is dated July 22.

1976–1979

The Micro-Soft trade name is registered in 1976. Microsoft’s headquarters move to Bellevue, Washington, in 1979.

1981

Microsoft incorporates in June, and IBM announces its personal computer with Microsoft’s DOS software in August.

1982–1983

Allen is diagnosed with Hodgkin disease in 1982 and leaves active Microsoft management on February 18, 1983.

1988

Allen buys the Portland Trail Blazers. He and Jody Allen establish the Paul G. Allen Family Foundation.

Early 1990s

Allen backs Interval Research and other technology and media ventures.

1997

Allen buys the Seattle Seahawks. Washington voters approve a stadium-funding referendum.

2000

Interval Research’s research operation closes. The Experience Music Project opens in Seattle, and Allen’s Microsoft board service ends as he becomes a senior strategy adviser.

2002

The Seahawks’ new stadium opens in Seattle.

2003

Allen announces an initial $100 million commitment for the Allen Institute for Brain Science.

2004

The Allen-financed SpaceShipOne project wins the Ansari X Prize on October 4.

2009

Allen is diagnosed with non-Hodgkin lymphoma. Charter Communications emerges from Chapter 11 restructuring on November 30.

2010–2011

Allen joins the Giving Pledge in 2010. His memoir Idea Man appears in 2011, and he supports development of the Stratolaunch concept.

2014

The Seahawks win Super Bowl XLVIII in February. Allen founds the Allen Institute for Artificial Intelligence and announces an Ebola-response commitment.

2017

An Allen-supported expedition locates wreckage of the USS Indianapolis in August.

2018

Allen discloses a recurrence of non-Hodgkin lymphoma and dies in Seattle on October 15.

2019–2025 (after Allen’s death)

Stratolaunch’s aircraft makes its first flight in 2019. Works from Allen’s collection sell at auction in 2022. The family foundation is renamed Allen Family Philanthropies in 2025.

FAQs

Question: Did Paul Allen and Bill Gates found Microsoft together?

Answer: Yes. Paul Allen and Bill Gates formed the business that became Microsoft in 1975 after developing a BASIC interpreter for the Altair 8800. Other programmers, including Monte Davidoff, contributed to that early software.

Question: Did Paul Allen invent MS-DOS?

Answer: No. The earlier system, 86-DOS, was written by Tim Paterson at Seattle Computer Products. Microsoft licensed and purchased it. Allen was involved in Microsoft’s software work, including the DOS 2.0 team, but was not the sole inventor of DOS.

Question: Why did Paul Allen leave Microsoft in 1983?

Answer: Allen left active management after being diagnosed with Hodgkin disease in 1982. He later said tensions with Bill Gates also played a part. Gates said his recollections of many events differed. Allen remained a Microsoft director until 2000.

Question: Did Paul Allen save the Seattle Seahawks from moving?

Answer: Allen acquired the Seahawks in 1997 while their future in Seattle was uncertain. The stadium’s future also depended on a public funding referendum approved that year. The result involved Allen, voters, the stadium authority and the team.

Question: Was Paul Allen’s 1982 cancer the same disease that caused his death?

Answer: No. Allen had Hodgkin disease in 1982. He was diagnosed with non-Hodgkin lymphoma in 2009; that later illness recurred in 2018 and caused his death.

Question: What did Paul Allen do for SpaceShipOne?

Answer: He financed the project. Burt Rutan and Scaled Composites designed and developed the spacecraft, and pilots flew it. SpaceShipOne won the Ansari X Prize in October 2004.

Question: Did Paul Allen personally find the USS Indianapolis?

Answer: No. Allen supported a research expedition that located wreckage of the ship in August 2017. The expedition team made the discovery, aided by earlier historical research.

Question: What happened to Paul Allen’s art collection after his death?

Answer: Christie’s sold works from the Paul G. Allen Collection in November 2022 for a reported total of approximately $1.62 billion. The auction took place after Allen’s death, and Christie’s said his estate intended to devote the proceeds to philanthropy.

Interviews

Paul Allen Reflects on Gates, Microsoft and His Later Interests

In an April 2011 interview with WIRED, Allen discusses his partnership with Bill Gates, his experience of cancer treatment and the work he pursued beyond Microsoft. The conversation includes his own view of disputed events as well as his interests in research and music. It is particularly useful for hearing Allen’s perspective in his own words.

View the interview

Further Reading

Sources