Steve Jobs and Bill Gates: Historic discussion live from D 2007

We're in! They're playing the Beatles, just like they did when Jobs came out the first time.
Update: Video recap online! Right after the break, but before the rest of our coverage.


1991 Jobs and Gates, photographed together. 1997, Jobsnote in which Gates appears on-screen via satellite. Jobs: "Relationships that are destructive don't help anybody." Gates gets cheers and jeers. "The era of setting Apple and Microsoft up in competition is over." Not quite Steve, but close! 2007 - TOGETHER HERE NOW.






Gates is sooo reminiscing, talking about Altairs and Woz and floating point -- Jobs interrupts. Jobs: Let me tell the story! [Huge laughter.] Chatting about Woz not authoring floating-point BASIC -- Microsoft sold Apple their floating-point BASIC app for $31,000. The trip, apparently, was fun! Walt wants to know what was the most fun, though. Talking about the original Mac... Bill: What Steve had planned was intended to be a LOT more money. Steve kind of gave the eh-whatchagonna do look. Much laughter.
22k for the screenbuffer, 14k for the OS. Hot damn that's an advanced machine. Talking about Mac apps and the like... Kara: What'd you think was going to happen to Apple after Steve left? Bill: Apple's fate hung in the balance! Bill: The debate wasn't Mac vs. Windows, it was CLI vs GUI. We were looking to invest... with Gil Amelio. laughter. Steve has a big big grin. "Don't worry about that negotiation with Gil Amelio anymore." laughter. Steve: Gil had a saying, "Apple is like a ship with holes in the bottom leaking water. My job is to get that ship pointed in the right direction." Huge laughter. Bill is talking about the virtues of Windows 95, Steve is looking on biting his lip -- not grumpily though, if you can picture it.
Steve: Apple was in very serious trouble.... a zero sum game. Apple invented a lot of this stuff but Microsoft was very successful. There was a lot of jealousy. It was crazy, Apple was very weak, so I called Bill and tried to patch things up. Bill talking about developing Mac apps. Steve: Microsoft is one of our best developer partners. Kara: Are you competitors? I have to admit, I really like PC guy. Steve: The art of those commercials isn't to be mean, it's for those guys to like each other. PC guy is great. PC guy is what makes it work! Big laughs. Walt: How often is MS on your radar in a business sense? Bill: Look at Zune... they love that Apple created this market, and they're going to contribute... something... to that.... Steve is SO known for his restraint. Huge laughs.
It's almost heartwarming... Walt is mentioning that Apple is known for its vertical integration methods. Steve recites the Alan Kay quote about those wanting to do great software needing to make hardware. Bill: I can resist that. Ha! Laughs.


They're chatting up the Palm Foolio, er, Folio now... but what's the device in 5 years? Bill: You won't have one. I believe in the tablet form factor... Steve: The personal computer has been very resilient. The internet changed all that. The notion of the PC as the digital hub started to take off. There's something starting again... there's an explosion in post-PC devices (like the iPod). Devices focused on functions -- that's the category where the innovation is. [Well no joke, and that's why Engadget's here, yeah?] Walt wants them to estimate the core functions of the cellphone-like user device in five years. Gates believes ultimately you won't ever want to edit things on your small device... talking about flexible and rollable displays. Steve: the art of devices is the editing function, what's on it and what's not on it. But it will primarily be a communications device.
Kara asks Steve and Bill what they're looking at for next gen communications and collaboration tools, like Wikis etc. Steve and Bill stare blankly for a number of awkward moments... Steve: There used to be saying at Apple, "Isn't it funny? A ship that leaks from the top." That's what they used to say about me in my 20s. Walt: .Mac... you guys didn't really develop it. Steve: I couldn't agree more, and we'll make up for lost time in the near future.
Walt: Do you worry about not being as nimble as some of these companies? Bill is talking about the ecosystem and using cool new stuff to drive demand for both their businesses. Steve thinks Apple takes a different approach. We don't know how to do maps, search, some of this new stuff... so we partner with those companies that do. It's really hard for one company to do everything. They're talking about becoming enablers of digital content. Steve: The industry is still trying to make the transition while they're under attack from piracy... learned some things to do, some things not to do. There's a tremendous amount of experimentation and thought going on that's gonna be good... really good.
Walt: is there a new paradigm coming for the PC? Bill is digging on the idea of 3D computing and natural input, and how it is going to change the way we interact with technology. They're still discussing interfaces. Bill: touch, ink, speech, vision -- you're underestimating the degree of evolution. Ha! Kara and Walt are totally making fun of Steve. "Yeah, we know your'e working on something... it's going to be beautiful and BLOW US AWAY." Hilarious. Steve looks perplexed but you can totally tell he wants to dish.

Q: What will you two find ground on in terms of policy in the 2008 elections? Steve: We've got some pretty big problems. Most are bigger than anything Silicon Valley can contribute. Steve's talking about alternative energy and our dependency on foreign oil. Kara: are you investing in energy? Bill: Some. Kara: So that could be a lot. [Laughs]
Q about standards and convergence devices. Steve: Bill and I can agree we can get it down to two! Bill: The marketplace is great at allowing diversity when it should, and allowing it to go away when it should. Steve: And allowing it back sometimes! Harrrrr. Laughs.
Q about their legacies. Applause for Bills charity work, huge huge applause. Does Steve envy Bill's second act? Steve: Bill's goal isn't to be the richest guy in the cemetary. ... I look at us as two of the luckiest guys on the planet... we've found what we loved to do at the right place at the right time. Your family and that, what more can you ask for?
Q asking about a single piece of advice for a new entrepreneur. Bill is talking about economies of scale, and wanting to do great things, no worry about growth and money so much. Love of the game! Steve: It's really hard. If you don't love it you're gonna give up. It's a lot of hard work, it's a lot of worrying. Love it, have passion. You've got to be a really good talent scout. Build and organization that can build itself.
Q about what they've learned and what they could have learned from the other guy. Bill: I'd give a lot to have Steve's taste. Laughter. Intuitive taste and products. The way he does things is just different. Just... wow. Steve: We weren't so good with partnering with people. Bill and Microsoft were really good at it. ... Steve: We're up to a million personal training sessions a year, a lot of them are seniors.
Last question! About... the metaverse? Oook. Asking about the next 5-10 years. Bill: I don't think Steve's going to announce his transporter. Laughter. Steve: I don't know, and that's what makes it exciting to go into work every day.
They're wrapping up... shall we recap? Steve, calculating, articulate, very guarded, playing his hand very close to the chest. Bill, very friendly, very open, surprisingly accessible. Both so clearly in love with what they do. These two guys are one in a million, and it's totally clear they've never respected anyone else quite like they respect each other.
The Beatles play them off, another standing ovation. We're out folks, g'night!


















Reader Comments (Page 1 of 3)
Ari @ May 30th 2007 10:32PM
That is what phallic means. *sigh*
I need a live feed of D before I implode from anticipation.
Jon @ May 30th 2007 11:19PM
Gizmodo coverage is sad. The guy who is writing up does not seem to have any knowledge on tech. It may seem surprising but Engadget has the better coverage today it seems.
Zach @ May 30th 2007 10:07PM
I've got my finger hovering over the F5 key just in case my FireFox extention (ReloadEvery) fails to reload every 30 seconds.
The christians have christmas, the jews have passover, the stoners have 420.
Nothing compares to what could happen in this discussion.
Except maybe 420.
William Donaldson @ May 30th 2007 10:08PM
Wonder why Apple hasn't bought Microsoft yet...
Cullen D @ May 30th 2007 10:12PM
You mean Microsoft buy Apple? Apple could no where near afford MS... They have so many research divisions, they have the OS, the hundreds of software programs, Zune, 360, Surfac computing, 100 more top secret apps. Apple trying to buy Microsoft would be like a poor college kid living in his parent's basement trying to buy a crate of Cuban Cigars and a pallet of Cristal...
xxdesmus @ May 30th 2007 10:51PM
Easily the stupidest comment of the day. Way to go.
theone3 @ Jun 3rd 2007 11:12AM
Wouldn't that mean it would be eating itself? A large portion of Apple is already owned by Microsoft.
Matt @ May 30th 2007 10:10PM
No, based on past experience, it would be:
INT D5 AUDITORIUM
Jobs: "Hi, I'm a Mac"
Gates: "I can't comment on someone else's ad. Goodbye."
(Gates storms off like a whiny wench)
(Jobs shrugs and waggles eyebrows comically at camera)
(SFX: Trombone "wah-wah" sound)
raneka @ May 30th 2007 10:12PM
Will they kiss?
Ryhan @ May 30th 2007 10:22PM
Yes, Apple is nowhere near worth MS. MS has "control" over almost every computer in the world. (However, the Zune, not so much...)
However, it would be great if the two put aside their technical differences and made everything work together, and give all mac users updates so that they can work seemlessly with windows-computers... Ahh, what a dream.
"I have a dream that one day this world will rise up and live out the true meaning of its creed: "We hold these truths to be self-evident: that all computers are created equal."
I have a dream that one day on the red hills of Georgia the sons of former Mac fanboys and the sons of former windows users will be able to sit down together at the table of brotherhood."
gelato @ May 30th 2007 10:17PM
Clash of the titans! or maybe David vs Goliath.
Dustin Leiblein @ May 30th 2007 10:17PM
Why tf can't I watch this live?! This is HISTORIC!!!
Steve @ May 30th 2007 10:19PM
Is there a live feed anywhere?
Peluka @ May 30th 2007 10:20PM
Feels like "geeksuperbowl" anxiety...
Hernan Paredes @ May 30th 2007 10:20PM
who are these people?
Eric Glassman @ May 31st 2007 8:04AM
You win, man. I love humor. Good, clean and fun. And brief. Checkmate. Touche.
Eric Glassman @ May 31st 2007 8:16AM
I loved the part where Jobs jumped up and started screaming about how Windows was a shameless ripoff of the Macintosh look and feel, and he was the innovator, and then he started cussing, and screaming, and..
Oh, Sorry, that didn't happen.
Matt @ May 30th 2007 10:20PM
Probably not, but if it's anything like the previous discussions, there will be some video available afterward.
csjk789 @ May 30th 2007 10:21PM
I want to see blood...
AI @ May 31st 2007 12:47PM
Apple doesn't need to be worth as much MS cos the real value of MS products is very low. Apple has its own hardware and software which work great and better than MS products. The comparison comes in when looking at MS office for MACs. Its a diff design to windows version. its more elegant, efficient why? because apple cares about its products and its users. Moving on to multimedia. and hardware used for it. Apple's Final cut Pro is awesome. nothing in the industry matches it. I reckon hollywood industry has already upgraded its hardware to Mac 8core version and Final cut pro. Find a multimedia editing suite for windows at that standard. you won't find one. there is Avid liquid, but that is again a virtual machine running inside windows. It still has lot less features than final cut.
syztem @ May 30th 2007 10:25PM
anyone else notice the phallic object in the center of the image?
Matt @ May 30th 2007 10:26PM
Ahaha, negative space FTW!
Becca @ May 30th 2007 10:28PM
That's called a wall.
George Bratley @ May 31st 2007 6:55AM
It's a shame there's no IRC feed.
halhiker @ May 31st 2007 4:32AM
Are they staging this in an octagon? If so, maybe I can catch it live on Spike TV.
Matt @ May 30th 2007 10:29PM
I'm hoping for a fist fight... jk ;)
travis @ May 30th 2007 10:30PM
zune phone!!!!
swaltuo @ May 30th 2007 10:31PM
so when is the fun supposed to begin anyway?
csjk789 @ May 30th 2007 10:31PM
Ryan Block: How can I be like you? I'm obsessed with this crap too and I like to write... Unfortunately, I don't get to go to events like this.
Mike @ May 30th 2007 10:35PM
Re relative value of M$ and Apple, WSJ today reported that the 'captialization' of Apple reached $100 billion given todays rise in value. vs. Microsoft at $295 Billion. So altho Microsoft has dominance in installed base, the value per share, or value per installed base, is substantially less than Apple.
Amazing that Microsoft has what? 90%+ of installed base, but market value to investors is currently only 3x Apple
nikster @ May 31st 2007 9:47PM
Mike: About the market caps of AAPL and MSFT - it's because Apple has huge growth potential and MS has zero.
Look at Google - Google's revenues are nowhere near justifying its market cap. But ppl expect great things from GOOG so they invest.
The market cap expresses what investors feel a company will do years and years into the future. And investors have been wrong before. Sometimes spectacularly so. So don't read too much meaning in market cap.
And here's from your own Engadget analyst (owns AAPL):
MSFT: MS owns everything, has a monopoly/license to print cash, has no ideas and all operations except windows and office lose money and it's not foreseeable any of them will make a profit any time soon. Maybe XBOX but even that has a big question mark. MS cannot grow based on Windows / Office because it already maxed out its market share. MS cannot grow with the other products because they all lose lots of $$$. MS does not have a history of innovation. MS might be the next IBM (before the IBM recovery). MS can be expected to dish out good dividends based on huge profits for years to come - but that is not an interesting upside for investors.
AAPL: Apple has a tiny market share which is growing like crazy. The iPod halo effect will be increased by the iPhone halo effect. Apple might become the worlds largest music store, a major player in cell phones, and given their track record (iPod) may realize all the potential that is in computer/home entertainment convergence. Lots of companies are trying but only very few of them look likely to succeed, AAPL chief amongst them. Strong design, strong focus on usability - that makes greate consumer devices.
All along, Macs are the bread and butter and growing the mac market share to 10% would double Apples already excellent profits from Macs.
This is why the stock price is extremely high. Whether or not its too high despite all the positives is up to you.
Matt @ May 30th 2007 10:33PM
They are crazy to have them sit next to each other.
Dustin Leiblein @ May 30th 2007 10:36PM
MORTAL KOMBAT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Jesse G. @ May 30th 2007 10:41PM
engadget needs to update a tad faster
ggg @ May 30th 2007 10:48PM
Ya know Jobs and Apple trash talks about Gates and Windows all the time. If he just all sweetness and nice now first hand with Gates it tells me he is simply the grandstanding phony I have suspected.
Matt @ May 30th 2007 10:43PM
DAMN! Get them both some longer pants! And some baggier ones for Steve.
Becca @ May 30th 2007 10:49PM
No kidding - I suppose money doesn't buy style these days.
Darnell @ May 30th 2007 10:46PM
Lol @ these comments. Y'all are hilarious. I'd be noice for a live feed. I mean it's a tech conference for God's sake. iChat, windows Live or something!
Richard Lai @ May 30th 2007 10:44PM
Bill and Steve crossed their legs in opposite ways!
Becca @ May 30th 2007 10:48PM
That's a very interesting comment. Crossing one's legs creates a barrier between yourself and others - indicates a subconscious desire to protect oneself. Crossing your legs away from someone is an attempt to create distance between the two of you. Even though Bill and Steve are sitting next to each other, they have crossed their legs away from each other.
Jon @ May 30th 2007 10:52PM
Judging by the pics, Steve looks a little bit edgy and Bill comes up a little bit more relaxed. The cross leg comment is interesting.
Richard Lai @ May 30th 2007 10:54PM
Exactly! I know I do that sometimes too. Oh, the tenion.
andrew harrison @ May 30th 2007 11:46PM
glad to see you've seen the movie "clueless"
Becca @ May 31st 2007 12:11AM
Actually, I haven't seen that movie.
King Emperor @ May 31st 2007 12:15AM
I'm calling BS.
Matt @ May 30th 2007 10:47PM
The PC guy rox!
Alber1690 @ May 30th 2007 10:51PM
I need to see this! No video feed? WHAT!? And the damn allthingsd.com site is not working at all right now...
Jon Graft @ May 30th 2007 10:52PM
Is there anything to come from this? Are they just going to talk or are they going to discuss the release of a new product or something? If they're just going to talk about nothing, then I'm going to bed...
Jason @ May 30th 2007 10:53PM
How about a game of Thermonuclear War?
Richard Lai @ May 30th 2007 10:55PM
Whoops I meant tension.