‘He almost didn’t make it’: Bill Gates nearly overlooked Satya Nadella for CEO — now he calls it one of Microsoft’s best decisions

Today Microsoft is unthinkable without Satya Nadella. His leadership at the Seattle-based software behemoth has been nothing short of transformational, but according to Bill Gates, Nadella almost didn’t get the top job.

Gates, in a recent interview which had aired on Microsoft's YouTube channel, admitted quite candidly that despite backing from himself and former CEO Steve Ballmer, Nadella’s rise to the helm was nearly derailed.

In hindsight, Gates admitted that choosing Nadella has been one of the best decisions in Microsoft's history.

Since Nadella's appointment as the CEO of Microsoft, the tech giant has not only enhanced and grown its share price, but Nadella was instrumental in leading the company into the domain of artificial intelligence (AI) by partnering and also becoming a major investor in Sam Altman-led OpenAI.

Gates, the co-founder of the $2.9 trillion tech giant, who was in conversation with Microsoft’s Vice Chair and President, Brad Smith, recalled the emotional weight of handing over the reins after stepping down as CEO in 2000.

"I’ll tear up on this, ’cause it meant a lot to me," Gates said. "I’ve had two successors, and boy, do I feel lucky because as I went off to do the foundation work, the one thing that plagued me was: Was I going to see the company fade in terms of its excellence?"

Steve Ballmer, who succeeded Gates as CEO, led Microsoft through a period of growth and expansion. But when Ballmer announced his retirement in 2013, the search for a new leader sparked intense speculation. Gates revealed that there was a real possibility that Microsoft might have overlooked Nadella for the role — a decision that could have altered the company’s trajectory.

"The fact that Steve took us to new heights and the fact that through a process that almost made the wrong decision—although you and Steve and I never wavered from knowing Satya would be good — makes me feel so good," Gates told Smith. "He's been even better at navigating what even today remains one of the most complex CEO jobs in the world."

Gates credited Nadella’s empathetic leadership style as a key factor in Microsoft's success. He contrasted it with the early hard-driving culture at Microsoft, which focused heavily on speed and technical prowess.

"Early on we were speed nuts, staying all night at the office, thinking, 'Oh, you’re five percent slower as a programmer? You don’t belong here.' It was very hard-core," Gates admitted. "Satya has a natural ability to work well with lots of people, to tell people they’re wrong in a nice way, and to let feedback come through to him more than I did."

Gates also reflected on the importance of humour in leadership, particularly during difficult periods. Recalling Microsoft's antitrust trial in the early 2000s, Gates acknowledged that his sense of humour might not have been ideal for a courtroom setting — but it was essential for maintaining perspective.

"You’ve gotta have a sense of humour. There was that time when I was testifying, and during the break the clerk comes up to me and says, 'Mr. Gates, I know people who have your scholarship. What are you doing in D.C.?'" Gates recalled. "All my complex testimony that day — the press covered that guy coming up to me. It made me seem at least a tiny bit more human than my image at the time was."

Gates’ reflections underscore how close Microsoft came to missing out on Nadella’s leadership. But in the end, the decision to back him has paid off — shaping Microsoft into a powerhouse under Nadella's leadership.