In a surprising twist, Microsoft co-founder Bill Gates has seen his net worth slashed by $52 billion, dropping to $124 billion, according to a recent recalculation by Bloomberg on July 3, 2025. Gates has moved up from fifth to twelveth position on the Bloomberg Billionaires Index as a result of this notable change, which is indicative of his substantial charity contributions. Even more striking, Gates now trails his former assistant and Microsoft CEO successor, Steve Ballmer, who boasts a net worth of $172 billion, securing the 5th spot globally. Ballmer’s unwavering investment in Microsoft shares and Gates’ charitable giving are highlighted by this uncommon inversion of the billionaire position. Let’s dive into the details behind this seismic shift in wealth rankings, updated with the latest facts for 2025.
Why Did Bill Gates’ Net Worth Drop?
Bill Gates’ $52 billion drop in net worth is not because of any financial losses, but due to his significant charitable donations. Bloomberg’s latest valuation mainly reflects Gates’ contributions to the Bill & Melinda Gates Foundation, which he and his former wife, Melinda French Gates, have funded with $60 billion since its inception. Additionally, Warren Buffett, a close friend and fellow philanthropist, has donated $43 billion to the foundation.
By 2045, Bill Gates has pledged to donate 99.96% of his assets. This great commitment to philanthropy is a major factor in determining his net worth. In a May 2025 blog post, Gates gave his own estimate of $108 billion, which Bloomberg updated their calculating methodology to reflect.
Gates’ wealth is no longer heavily tied to Microsoft, where he holds less than 1% of shares (approximately 103 million shares). Rather, Cascade Investment LLC, a holding company with a variety of assets in energy, real estate, hospitality (such as Four Seasons Hotels), and publicly traded firms including Republic Services, Ecolab, and Berkshire Hathaway, is in charge of managing his riches. His $21 billion stake in Republic Services and ownership of 270,000 acres of U.S. farmland further diversify his portfolio. However, these assets pale in comparison to the value of Microsoft stock, which has driven the wealth of others like Ballmer.
How Did Steve Ballmer Surpass Bill Gates?
With a net worth of $172 billion, Steve Ballmer, who became the 24th employee of Microsoft in 1980 and worked as Gates’s virtual assistant, is now the 5th richest person in the world.
The massive growth in his wealth is mainly due to his 4% ownership in Microsoft around 333 million shares which have surged in value as the company’s stock has increased more than tenfold over the last ten years, now approaching $500 per share. Microsoft’s $3.7 trillion market capitalization, which is fueled by the company’s $10 billion investment in OpenAI and the AI boom, has significantly enhanced Ballmer’s wealth.
Ballmer has not diversified as much as Gates, keeping almost 90% of his wealth in Microsoft stock and owning the Los Angeles Clippers for $4.6 billion.
Ballmer had an incredible quest to overtake Gates. Ballmer was initially paid $50,000 plus a 10% profit-growth share when he was appointed. As his salary increased, Microsoft granted him an 8% ownership stake, which was later lowered to 4% upon his 2014 resignation as CEO. Unlike Gates and co-founder Paul Allen, who diversified, he chose to stick onto Microsoft shares, and it has paid out handsomely. As Ballmer quipped on the Acquired podcast, when asked by Charlie Munger why he didn’t diversify like Gates, “No, Charlie, but I’m that loyal.” This loyalty to Microsoft stock has propelled him ahead of Gates, marking a rare instance where an employee outpaces a company founder in wealth.
The Philanthropy Factor: Gates’ Giving Pledge
Bill Gates’ Charitable Promise’s Charitable Aspect Gates’ commitment to the Giving Pledge, which he and his wife, Melinda French Gates, co-founded in 2010, and which asks him to contribute the majority of his money, is reflected in his drop in the wealth rankings. Bill Gates has devoted his life to philanthropy since leaving his position as CEO of Microsoft in 2000, and the Gates Foundation has grown to become one of the most significant nonprofits in the world.
His contributions totaling $60 billion, including a notable $20 billion donation in 2022 have had a profound impact on global health, education, and climate-related initiatives. In contrast, although Steve Ballmer has made meaningful contributions through the Ballmer Group, his philanthropic efforts haven’t matched the scale of Gates’, which has allowed him to hold on to a larger portion of his Microsoft-generated fortune.
The public’s interest in this change is evident on X, where users highlight the irony that Ballmer’s Microsoft allegiance paid off while Gates’ fortune was reduced as a result of “giving it away.” One report characterized Gates’ philanthropy as a strategic move to shape his legacy, noting the $52 billion drop in his net worth as particularly “startling.”
Comparing Gates and Ballmer: A Tale of Two Strategies
Ballmer Bill Gates’ approach consisted of diversified assets through Cascade Investment, large philanthropic contributions, and a 1% interest in Microsoft. His focus on philanthropy has lowered his net worth but amplified his global impact.
Steve Ballmer’s Strategy: Retained a 4% Microsoft stake, minimal diversification, and benefited from the AI-driven stock surge. His Clippers ownership adds a smaller but notable asset.
This difference demonstrates how Ballmer’s focused investment in Microsoft, currently the second-most valuable business in the world after Nvidia, contrasts with Gates’ selfless attitude.
What’s Next for Gates and Ballmer?
Gates’ wealth may continue to decline as he accelerates donations through the Gates Foundation, which plans to wind down by 2045. Although his diverse portfolio offers stability, it is unlikely to outpace Microsoft’s stock’s rapid rise. Ballmer’s wealth is dependent on Microsoft’s performance, which is still robust despite the AI revolution. Any market fluctuations could affect his ranking, but his substantial shareholding positions him well for continued wealth growth.
Why This Matters
This inversion of the billionaire position highlights the importance of strategic decisions and goes beyond a mere financial anecdote. Ballmer’s devotion to Microsoft demonstrates the benefits of remaining with a rapidly expanding tech company, while Gates’ generosity establishes a standard for billionaires to prioritize the common good. This story emphasizes the value of variety over concentration in wealth-building for investors and tech aficionados.
Conclusion
Bill Gates’ $52 billion net worth reduction to $124 billion, as recalculated by Bloomberg, reflects his unparalleled commitment to philanthropy, dropping him to 12th on the Billionaires Index. Steve Ballmer, his former assistant, now outranks him at 5th with $172 billion, driven by his 4% Microsoft stake. This change, which was announced on July 3, 2025, is evidence of Ballmer’s devotion to Microsoft’s AI-driven expansion and Gates’ philanthropic legacy. As Gates keeps giving and Ballmer follows Microsoft’s lead, their tales redefine riches in the age of technology. Keep checking back for additional information on the world’s wealth rankings and what they mean.
