Introduction to Paul Allen:

Paul Allen is described as a multi-dimensional individual: an entrepreneur, technologist, investor, philanthropist, and now an author. His book, “Idea Man,” is the focus of the presentation and aims to narrate his life journey, emphasizing more than just his time at Microsoft.

Early History and Microsoft:

Although much publicity has centered on Allen’s history with Bill Gates and Microsoft, this part of his life takes up only the first third of his story. The two met as boys, shared a passion for software and code, and co-founded Microsoft. Allen left Microsoft in 2000, and the partnership had its highs and lows.

The Pursuit of Ideas:

The rest of Allen’s story is about the relentless pursuit and investment in ideas across multiple sectors like technology, sports, telecommunications, brain science, and museums. He’s not easily pigeonholed due to his varied interests and initiatives.

Philanthropic Ventures:

Running parallel to his business interests is Allen’s philanthropy. He has invested $100 million to map the human brain at a cellular level, resulting in the Allen Brain Atlas. He’s also given $41 million for mapping the human spinal cord, among hundreds of other philanthropic efforts in the last 20 years.

Writing “Idea Man”:

Writing his autobiography was challenging for Allen, particularly during his illness and chemotherapy treatments. He details that he worked meticulously to make the book as authentic as possible, sharing both his successes and failures.

Media Interpretation:

Jose Antonio Vargas, the interviewer, criticizes the media for oversimplifying and sensationalizing Allen’s book. Vargas argues that the book is a balanced portrayal, offering critical insights into Allen’s own life and decisions, not just a “Bill Gates vs. Paul Allen slant fest.”

Public Persona and Reclusiveness:

Despite being described as a recluse, Allen argues he’s merely private. He mentions that he has a large circle of friends and is socially active, debunking the recluse myth.

Candidness in Autobiography:

When questioned about the frankness of his book, especially concerning his Microsoft days and relationship with Gates, Allen states that he wanted to provide an “unvarnished, warts and all” account. He sees his time at Microsoft as an important chapter in his life that needed to be shared authentically.

Reactions to the Book:

Allen finds it surprising how people have various interpretations of his life and the book. He emphasizes that he wrote “Idea Man” during a period when he was unsure about his future due to illness, making the act of writing a meaningful exercise in legacy and self-examination.

High School Introduction to Computing:

Paul Allen recalled his early days in high school when he and Bill Gates were among the first to eagerly use a newly installed teletype terminal. This early exposure to computing led to both running up high bills on timesharing services, sparking their interest but also provoking anxiety about the costs.

Turning Point with Popular Electronics:

In 1974, Paul Allen experienced a feeling of “vindication” when he saw a magazine in Harvard Square featuring microprocessors. He had been telling Bill Gates that they should be working on a BASIC language interpreter for microprocessor chips, as they had already built a machine based on the 8008 microprocessor for a different venture.

Technical Challenges and Solutions:

Initially, Allen’s suggestion to build BASIC for the 8008 microprocessor was met with skepticism from Gates, who believed the chip was too slow and had limitations like a seven-level stack. However, with the release of the more advanced 8080 microprocessor, the idea became more feasible. Allen emphasized that it was this chip that made him believe they could genuinely start their venture in the world of personal computing.

The Start of Something Big:

Upon discovering a Popular Electronics article that introduced a computer built around the 8080, Allen immediately bought the magazine and showed it to Gates. This was a pivotal moment, fueling their conviction that the era of personal computing was dawning, and they had to be a part of it.

This segment encapsulates Paul Allen’s early experiences with computing and his partnership with Bill Gates, underlining key moments that eventually led to the founding of Microsoft. It highlights how their early interest and foresight into the potential of microprocessors laid the groundwork for their future ventures in personal computing.

Initial Exposure to Computing:

Paul Allen recounts his and Bill Gates’ early fascination with computing during high school. They both vied for time on the school’s teletype terminal and were at the top of the list for time-sharing costs, a point of concern for them at the time.

Vision for BASIC Interpreter:

Allen speaks of his enthusiasm for developing a BASIC interpreter for microprocessors long before they became mainstream. Despite initial hesitations from Gates due to technical limitations, Allen remained convinced that this was the future. His belief felt vindicated upon seeing an article in Popular Electronics, declaring the era of the home computer.

Uncertainty and Aspirations:

At the dawn of the home computing age, Allen admits that neither he nor Gates had a clear idea of how big the personal computer market would become. The duo initially estimated that if they were successful, they might employ up to 35 people. Microsoft now employs over 90,000.

Competitive Landscape:

Paul Allen’s role was to survey the competitive environment by reading everything he could find related to computing. At that early stage, they didn’t see significant competition in developing BASIC interpreters, making them believe they had a head start.

Role of Moore’s Law:

Although not familiar with Moore’s Law at the time, Allen was aware of the rapid improvements in microprocessor technology, from the 4004 to the 8080, indicating a trend of faster and cheaper chips. This trend implicitly shaped their vision for the future.

Partnership and Separation:

Allen reflects on his partnership with Bill Gates, acknowledging the strengths that both brought to the table. He admits that neither was as successful alone as they were together. Although he has pondered what might have been had he stayed at Microsoft, Allen chose to move on, attempting even to retire at the age of 30.

Challenges for Microsoft:

Allen briefly touches on the challenges Microsoft has faced in recent times, compared to its initial years of staggering growth. He hints at the idea that he could have influenced the company’s trajectory if he had stayed but is also content with the new chapter in his life.

Early Days and the Unknown:

Paul Allen discusses the early days of developing Altair Basic with Microsoft, mentioning the uncertainty around how big personal computers would become. He and his team aimed low initially, thinking a “successful” future might include just 35 employees. Microsoft, at the time of the conversation, had grown to over 90,000.

Role Specialization:

Allen speaks about the evolving roles within startups, particularly in a two-founder model. He mentions that he was more inclined towards the technical side of things, while Bill Gates was more into business and other non-technical aspects. Over time, these specialized roles became more pronounced, affecting the dynamic of their partnership.

Impact of Moore’s Law:

He acknowledges the impact of Moore’s Law, though not by that name at the time, in the growing capabilities of microprocessors. This was something he kept an eye on, as it signaled how much faster and cheaper technology was becoming, shaping the industry’s landscape.

Importance of Creativity:

Allen talks about his short-lived retirement at age 30, explaining that the restlessness to create something new overcame the desire to relax and travel. This reflects the intrinsic motivation often found in people involved in technology and startups.

Personal Dynamics in Startups:

When asked about the dynamics of friendships in co-founded startups, Allen notes that a lot depends on individual personalities. In many cases, one co-founder will become the face of the company, leaving the other in a lesser public role, based on their skills and inclinations.

Reflections on Film and Culture:

Paul Allen shares his impressions about the film “The Social Network,” noticing its similarities and differences to his early experiences. He also humorously compares the cultural startup food staple from Boston pizza to Palo Alto sushi.

Advice for New-Gen Leaders:

When asked what advice he’d give to new-gen tech leaders like Zuckerberg, he does not offer direct guidance but reflects on his own life-altering health scare at 30, which was a significant factor in his decision to step back.

This conversation offers valuable perspectives on the unpredictability of technology markets, the importance of role definition in co-founder relationships, and the perennial urge to create that drives technologists.

Importance of Vigilance:

Paul Allen emphasizes the need for companies to remain vigilant in the rapidly evolving tech landscape. He notes that new platforms can come along and render existing ones obsolete very quickly. Companies like Facebook and Twitter could have been created earlier, and giants like MySpace were surpassed because they weren’t sufficiently adaptable.

Role of Talent:

Allen discusses the importance of hiring and retaining the best people. He shares why Microsoft was not moved to Silicon Valley, where job turnover is high. The stability of a workforce can be a strategic advantage, as it was for Microsoft being based in Seattle.

Blind Spots and Adaptation:

Allen points out that even successful companies like Google and Apple didn’t see the rise of social networking. These “blind spots” can be significant challenges to established companies. The key is to be aware of potential platforms that could make existing ones obsolete.

Competition and Multi-Front Wars:

Microsoft faces fierce competition, particularly from companies like Google, Facebook, and Apple. Allen calls these competitors “high-tech hellhounds,” borrowing from a blues song. While Microsoft excels in PC and enterprise software, fighting a multi-front war in various tech sectors makes innovation hard.

Challenges of Catching Up:

When a company lags in a certain area, like Microsoft in mobile technology, it has to do more than just match competitors; it has to exceed them to persuade users to switch. Allen notes that this requires shorter development cycles, agility, focus, and deploying the best talent.

Advice to Microsoft and Steve Ballmer:

While Allen didn’t disclose the specific advice he’d given to then-CEO Steve Ballmer, he reiterated that the challenges facing Microsoft were mainly in the areas of rapid innovation and adaptation. Keeping up with emerging platforms is essential to prevent a “long, slow slide.”

Investment Perspective:

Allen briefly touches on his experience as an investor, mentioning he has invested in a wide array of internet, media, and communications companies. However, the discussion did not delve deeply into his investment strategies or outcomes.

This segment provides a comprehensive overview of the challenges and strategies that tech companies, particularly Microsoft, should consider for long-term success. It serves as a guide to what it takes to navigate a constantly evolving industry.

Biggest Failure: Charter Communications:

Paul Allen identifies his most costly failure as Charter Communications. He initially saw cable as a promising platform due to its ability to deliver high-speed data to millions of homes. However, the slow product cycle in the cable industry, especially the time required to install new set-top boxes, hindered its success. The main issue was the high amount of leverage involved.

Diverse Investment Portfolio:

Despite the failure with Charter, Allen has had a diverse range of investments including successes like Ticketmaster, AOL, and Priceline. He also founded what is now ESPN.com. He attributes some of the failures to market dynamics, mentioning the risks that come with investing during an “internet bubble”.

Comparison Between Tech and Hollywood:

Allen draws a stark contrast between the tech industry and Hollywood. In tech, failures are rigorously analyzed to understand what went wrong and how to improve. In Hollywood, failure in one project (like a movie) doesn’t necessarily lead to intensive scrutiny; instead, the focus quickly shifts to the next project.

Successes in Different Spheres:

When asked about his biggest successes, Allen highlights his investments in oil and gas pipelines, stating that these turned out to be extremely profitable. In contrast to this purely financial success, he also takes pride in his documentary work, even though he considers these projects to be more of a philanthropic endeavor.

Attention to Detail in Hollywood:

Although Allen felt like a “fish out of water” in Hollywood, he made contributions to details like ensuring realistic environmental interactions in movies like Shrek. He notes that this kind of detailed focus cost a significant amount (around a million dollars) but was necessary for a higher quality end product.

Technology-Driven Investments:

Paul Allen speaks about how the investments that excite him the most are those where he can add value as a technology person. He mentions AOL as an example where he saw potential early on. However, upon learning of Microsoft’s intention to compete directly with AOL, he decided to sell and profited from this decision.

Financial vs. Tech Investing:

While he acknowledges the profitability of his oil and gas investments, Allen seems to derive more satisfaction from technology-oriented ventures. The oil and gas sector represents more of “pure investing” for him, in contrast to technology investments where he feels his input can make a difference.

Patent Lawsuit:

When questioned about his high-profile lawsuit against multiple major internet companies like Yahoo, Facebook, Google, AOL, and eBay, Allen refrains from discussing details. He does mention that the lawsuit generated interest primarily because he, a well-known individual, was the one initiating it. He attributes the legal action to intellectual property generated from his past venture, Interval Research, despite its modest success as a company.

The Importance of Timing:

Allen stresses that being too early in an industry can be detrimental. An idea may not take root for various reasons—technological limitations, management issues, or simply because the market is not ready. Being aware of these factors is crucial for making strategic investments and business decisions.

Investment Philosophy in a Competitive Market:

Paul Allen touches on the highly competitive nature of the tech industry. He advises against commenting on specific companies for investment. Instead, he emphasizes the importance of due diligence in identifying innovative and defensible ideas. The market, he says, is crowded, so it’s crucial to be aware of the competitive landscape and the momentum of other players.

Vast Portfolio of Interests:

The conversation sheds light on Allen’s wide-ranging interests, from owning sports teams to investing in groundbreaking scientific projects. Whether it’s a modified office chair from the Star Trek series or a music museum, his life is filled with diverse pursuits. Allen comments on how his interests are not limited to just technology but span across various dimensions including adventure and music.

Scientific Challenges and the Ambition to Try:

Paul Allen discusses the challenges and uncertainties tied to ambitious projects, such as Spaceship One. The driving force, he mentions, is the ambition to try and push the boundaries. He talks about the importance of having a great team and remains especially excited about ongoing research in neuroscience and artificial intelligence (AI).

Work on the Brain:

Allen expresses a keen interest in understanding the human brain. His Allen Institute for Brain Science conducts industrial-scale research, mapping gene expressions in the brain and putting this data online for global research. The approach is likened to the industrial methods used in the Human Genome Project, aiming to aid in the treatment of neurodegenerative diseases like Alzheimer’s.

Artificial Intelligence Projects:

Paul Allen reveals a parallel interest in AI, a field he explores through his company Vulcan. Despite not knowing fully how the human brain works, Vulcan aims to encode the knowledge of a biology textbook into software. This initiative involves complex tasks like knowledge representation and reasoning, which are ongoing areas of AI research.

Current Focus and Future Plans:

When asked about the projects he is most excited about, Allen indicates that the brain and AI research are at the top of his list. He sees these areas as fields where one could spend many lifetimes trying to accelerate progress and is actively looking for new avenues to explore, including philanthropic efforts.

Importance of Philanthropy:

Paul Allen emphasizes the responsibility that comes with significant success, stating it is incumbent upon individuals to give back to society. He has pledged to dedicate the majority of his assets to philanthropic causes, inspired by peers like Bill Gates who have tackled global challenges like health and education.

Personal Philanthropic Focus:

Allen mentions that his current focus is on brain research and local philanthropy, particularly in the Pacific Northwest, which has benefited from nearly a billion dollars in investment and philanthropy. He advises that anyone involved in philanthropy should find causes that personally appeal to them, as this enhances the impact they can make.

Role of Mentorship:

Allen attributes much of his success to mentors throughout his life, beginning with his parents who instilled in him a love for books and learning. He also cites the role of teachers and professionals who mentored him in computer science during high school. Mentorship, according to Allen, is not only beneficial for career development but also for fostering a well-rounded life.

Cultural and Educational Outreach:

Allen highlights the importance of cultural centers and educational initiatives, like the Experience Music Project Museum in Seattle, to engage young people in fields like music or programming. He believes these types of platforms can serve as additional forms of mentorship, igniting interest and passion in young individuals.

Future Technological Trends:

When asked about the future of technology, Allen mentions the potential improvements in AI systems, referencing IBM’s Watson as an example. He suggests that technologies focusing on better speech understanding are part of the future, but refrains from making specific predictions.

Impact of Wealth on Choices and Responsibilities:

Allen describes his wealth as both liberating and a responsibility. While it opens up numerous possibilities, it also imposes the duty to be a careful steward of assets, the majority of which he intends to direct towards philanthropy upon his passing.

The overarching message from Paul Allen revolves around the role of success, wealth, and influence in contributing positively to society, whether through philanthropy, mentorship, or future technological advancements.

IBM and Microsoft in the Late ’70s:

Paul Allen discussed the early interactions between Microsoft and IBM, focusing on the development of the IBM PC. He highlighted the challenges he faced in ensuring the code they were providing was free of bugs. Allen mentioned the introduction of “hooks” in the code to fix bugs in the read-only memory (ROM), which proved invaluable.

DOS 2.0 and Tree-Structured Directories:

Allen recounted the debates over the features to include in DOS 2.0. While IBM was content with partitions, Allen advocated for tree-structured directories, an idea borrowed from Unix. Despite delays, his viewpoint was eventually included.

Impact of IBM Partnership:

Allen emphasized that while he and Bill Gates knew the IBM PC would be significant, they underestimated its transformative impact. The IBM PC set a standard that other companies wanted to emulate.

Commercial Space Flight and Spaceship One:

Talking about the future of commercial space flight, Allen mentioned Richard Branson’s licensing of Spaceship One technology. He described how the technology allows passengers to experience weightlessness in space, albeit briefly.

Risks in Space Technology:

Allen noted the high risks associated with human space travel. He expressed his nervousness during test flights and the importance of safety measures.

Intelligent Design vs. Evolution:

Allen briefly touched on a documentary about a court case focused on intelligent design. He stated that biologists have found intermediate forms that counter the arguments made in favor of intelligent design.

Advice for Programmers:

Allen reflected on the evolution of programming languages since his last coding experience in the 1980s. He advised programmers to carefully choose their language and tools but also cautioned against getting too caught up in this selection process.

Refactoring Legacy Code:

Allen humorously discussed the industry trend of ‘refactoring’ legacy code, pointing out that it is essentially rewriting code under a more modern term. He questioned whether the end result is necessarily better.

Gratitude to Doctors:

Paul Allen expresses his thanks to two doctors for their roles in his diagnosis and recovery from cancer twice in his life. The same doctor treated him for both instances, separated by nearly 30 years.

Cancer as a Wake-Up Call:

The first time he was diagnosed with Hodgkin’s disease, Allen considered it a wake-up call. He was shocked but also realized he had a chance for recovery. The treatment he received was developed at Stanford.

Radiation Treatment Repercussions:

Allen was informed that the radiation treatment he received for Hodgkin’s disease could have repercussions 20 or 30 years later. He was treated with the maximum amount of radiation a human body can tolerate, and that there may be long-term consequences.

Second Diagnosis and Treatment:

Upon his second diagnosis in 2009, Allen already knew he was very sick and that it was an advanced case—stage four. He was informed that the disease was a “garden variety, large B cell” cancer, but it was curable, making him consider himself lucky.

Emotional Response to Diagnosis:

In both instances of his diagnosis, Allen describes the emotional turmoil he went through. Initially, the news makes “your blood run cold.” The oncologist later clarifies the type of cancer and its treatability, providing a sense of relief.

Medical Advancements:

Allen highlights that his initial treatment for Hodgkin’s disease was developed at Stanford. This underlines the role of innovation and advancement in the medical field, which gave him a chance at survival for both diseases.

Overall, Paul Allen discusses the psychological and emotional aspects of dealing with a life-threatening illness, twice in his case. He also talks about the importance of medical innovation in providing effective treatments.

Life Balance and Mortality:

Paul Allen emphasizes the importance of balance in life, particularly in light of his two battles with cancer. These experiences led him to appreciate other aspects of life besides work, such as relationships with friends and family. The ordeals prompted soul-searching and prioritization, compelling him to consider what he would focus on if his time was limited.

Childhood Curiosity and Modern Tech:

Discussing his school days when he and a friend would look for discarded computer codes in dumpsters, Allen speculates on what young people today might seek in a similar quest. He notes the rapid adoption of technology among the youth and highlights the importance of channeling this interest into more creative and developmental avenues.

Inspiring the Next Generation:

Allen emphasizes the need to engage young people’s interest in technology in a meaningful way. Unlike kids today, who spend hours online in role-playing games, Allen was always intrigued by the inner workings of technology. He stresses that it’s crucial to inspire today’s youth to become the creators and engineers of tomorrow.

Impact of the Personal Computer Revolution:

The host expresses gratitude towards Allen for his role in the birth of the personal computer revolution, noting how it enabled him to create a life around internet and computing. Allen’s work in technology has had far-reaching impacts, benefitting entire generations.

Overall, Paul Allen talks about the need for balance in life, particularly when faced with significant health challenges. He also delves into the changing landscape of technology, emphasizing the need to inspire the next generation to engage in creative pursuits within this domain.