Bill Gates founded Windows, a company that created Microsoft. Bill Gates invented Microsoft in 1975 when he was 20 years old.
This is largely inaccurate. Bill Gates founded a software company called "Microsoft" in April 1975, when he was 19, along with Paul Allen. They started off working on a version of the programming language "Basic".
Later they sold a version of the operating system DOS (called MS-DOS) to IBM to launch on the new IBM personal computer (PC). This took off in a big way and many competitors developed computer hardware which were compatible with the IBM machine. These computers are the ones now called just "PCs".
Several years later, faced with the popularity of the Apple and its user interface, Microsoft developed a similar one for the PC and called it "Windows". The first couple of attempts did not really succeed, as most users were happy to stick with the old DOS way of doing things. Then Windows 3 came along and the Windows 3.1 which made several things (e.g. networking) much easier than on the old DOS basis.
Since then many people (thousands - literally) have worked on one version or another of the Windows software. At the time of writing Microsoft (the company) are preparing to release version 8 of Windows.
The original version of DOS which Gates and Allen sold to IBM was closely based on the work of another company, which Gates bought in. All later versions of DOS and all versions of Windows are not the "invention" of Bill Gates. He was, however, the person who saw the opportunities for all these changes and drove them through.
So - in short - Bill Gates (together with Paul Allen) founded Microsoft the company. At the guiding technical spirit, he helped drive the development of the Microsoft version of the WIMP user interface. However, the Windows, Icons, Menus, Pointer way of doing things was invented at the Xerox Palo Alto Research Center and first popularized by Steve Jobs Apple company.
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