hey, hey. they're running. see, this is the brilliance of the show. i say, always keep them running. all the time, running! run! run! run, yasmine, run like the wind! >> in the '90s, we are going to revolutionize humic medication using the desktop computers. >> what is the world wide web? >> and the world of computers is kill or be killed. >> please welcome bill gate! >> to you or agree or disagree that you have a monopoly? >> this is imac. >> is a technological revolution that's changing the way we do everything, from making friends to falling in love. >> when the new millennium arrives, so will a

technological tidal wave. ♪ ♪ ♪ >> so you've just bought your first personal computer, you

brought it home from the store, you're unpacking it, and then comes the moment of truth. if you've just got your first personal computer, this show is for you. >> computers were, in 1990, a disconnected device. it was a brick, right, inside your house, that let you do amazing things that you'd never been able to do before, but it was, essentially, a productivity tool. >> now that we have all these very powerful tools, we are still islands, and we are still not really connecting these people using these powerful tools together. >> apple was in a period of decline. steve jobs quit in kind of a temper tantrum in 1985, and he went off and started a company called next. after he left, there was a sequence of pretty boring, unimaginative corporate leadership that followed him. >> so why did you leave apple? >> well, why did i leave apple? well, i was asked to leave. yeah, i was asked to leave apple. i was planning on spending the rest of my life there, but didn't work out that way.

>> steve jobs was a genius, but one of the reasons he got moved out of his job was because he was spending huge amounts of money on projects that, for the most part, never reached the market. and apple had a crisis of confidence. >> at a time when major computer corporations like apple are laying off 10% of their workforce, microsoft is the big exception in the computer industry. >> people didn't get how much value there was to be derived from software. the operating system could be the most valuable piece of real estate in the whole computing business was something not understood by almost anybody in the computer industry, apart from bill gates. >> today, we are introducing microsoft windows version 3. >> bill gates, part-time assassin, part henry ford, part holding caulfield from catcher in the rye. >> at 19, he dropped out of harvard to design computer software with his friend paul

allen. they came up with a system that operates 90% of a personal computers today. >> microsoft was making a lot of money then. they were charging 200, 300, $400 for, say, a word processing packages. it really was costing them about $.50 to print on floppies. >> hard-working, modest, easy- going. it would seem, to a fault. of course, he does have at least one secret, but we'll fix that. >> is it true that you can the over a chair from a standing position? >> it depends on the size of the chair, but this chair, probably so. >> yes! >> i, i took a step before i did it. >> it's okay. >> bill gates wasn't just one thing. he was a brilliant guy, had great parents, family values, but he was a killer. he basically was a ruthless guy, and so was microsoft. >> no, no, no, no, somebody's confused but is just not thinking. i mean, there's no way -- you

guys never understood. never understood the first thing about this. >> a lot of people make the analogy that competing with bill gates is like playing hardball. i'd say it's more like a knife fight. >> i've never heard any of these things. you know, you're saying, like, knife fight? that's silliness. it's childish. i mean, why be a mouthpiece for that kind of, of silliness? well, i'm done. >> can i just ask you one, one more question? bill? >> no, i don't think so. >> i remember one time interviewing gates, and i said, microsoft owns the world right now. you worry about that? he said, i worry about it every single night. i go to bed thinking, what have i not thought about? >> now it's starting to dial. and now i am in. >> it spans the globe the

superhighway it is called internet, the net began back in 1969. it was a total of the pentagon. but nowadays, just about anyone with a computer and a modem can join in. >> the internet was a really dorky, hard to use, an extremely nerdy thing. none of your friends would've been on this. just, fellow people in tech. >> the internet, really, was not a huge factor in the early '90s. but that change things. >> they are calling in the next bill gates. 24-year-old mark andreasen, 15 months ago, andreasen, fresh out of the university of illinois, helped start a company called netscape. at 11:00 a.m. this morning, the company's stock went public, and wall street went bonkers. so what does netscape produce that now makes the company worth $2.9 billion? this, the netscape navigator, software which makes it easy for people to connect to the global computer network called the internet. >> microsoft has a long history of feeling threatened by hot

new upstarts. you could easily argue that bill gates game plan was world domination. >> these guys can be taken! but the only way we are going to take them is by studying them. know what they know. do what they do. watch them, watch them, watch them. take every one of their good ideas and make it one of our good ideas. >> microsoft came down and essentially said to netscape, hey, you know, we can be friends, or we can be enemies, and if we are going to be friends, that's great. you'll get all the advantages of working with microsoft in 1 million ways, and you'll be on the home screen of a lot of computers. or we can compete. if we are going to compete, we are going to do whatever is required to kill you. >> some people believe that you have an infinite appetite for power, that you are the embodiment of someone who says, i wanted all, and you want to eat up your competitors. is that unfair? >> it -- it doesn't ring any bells with me.

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the first day back. >> what new president clinton, conservative radio personality, rush limbaugh, and rockstar billy idol have in common? they all got electronic mail addresses on computer symptoms linked to the internet. >> you are the other people that are on it? >> other people just like you. >> but how did they get on it?

who regulates this internet, and who decides who gets on this highway and who doesn't? >> well, the services we are talking about today are commercial services, see you spend money to get on there. so there's no real regulation, per se. use your phoneline and your computer, and you get online. >> compuserve was for the tech savvy people. prodigy was for shopping, and aol was the first one that had a vision to get everyone connected. >> when i heard that sound, i cried a little bit, because i knew there was a big adventure waiting for me. >> welcome! you've got mail. >> compuserve charges by the minute, so it was like a taxicab. aol's invention was to forget that charge, $19.95 a month, all you can eat. and that changed everything, because now you can afford to be on the internet all you wanted. >> you didn't have to be a researcher. you can piled onto aol. aol was specifically designed to be point-and-click. and steve case is the president of america online. i interviewed him via computer. >> then george asked, one of

the most popular america online features right now? >> he response, the real focus for us is on promoting interactivity. >> what's the very best thing about it? i think being able to communicate with just about anyone, anywhere. >> one of the things that aol realizes is that america online can't be all 200+ million people at once. you need little neighborhoods, and so chat rooms become internet neighborhoods where people who share interests create their own little space. >> you just click on the chat button appear, or go to the people that connection, that's what america online clicks it. you'll find different categories of rooms. >> when i was a kid, i didn't know any other black people, and the only people i knew were the folks that i met on america online. i didn't come out to my mother until much later, but i was out on the internet. >> in many respects, aol was, you know, one of the first social media companies. >> computer communication is not like human communication. there's no facial expression to help you know which way something ambiguous is meant, so the isolated communicators

of cyberspace have come up with little signs made out of punctuation marks. they are called emoticons. >> you're using text to have a conversation that felt like a face-to-face communication. you could see the start of this new online culture. >> is a technological revolution that's changing the way we do everything, from making friends to falling in love. >> he was nice, and he never gave me any of the, on lines. >> you're telling me that guys use pickup lines on a computer? >> as the internet grows, and finding information, i also want to find love. >> i just happened to stumble on michael's address. i picked him out of the blue. i read his profile, and i was completely floored. >> many of the businesses of the internet work on connecting, for the first time, total strangers who have very narrow interests in common. >> aol was what was called the world garden. should this, you're paying a monthly fee for something with a limited number of things to

do. no matter how many things they put inside the garden, it could never come close to the hundreds of millions of things that would pop up on the open internet. the thing about the world wide web is that it has no central organization body. it's chaotic. >> if you are running a website, how is anyone going to find you? >> stanford grad students jerry yang and david philo like spending hour after hour discovering interesting places on the internet, so that is how they stumbled onto a fortune. their million dollar idea is called "yahoo". >> yahoo! >> yahoo came in at just the perfect time. they literally made a list. it was just, simply, a listing. it was jerry and david's web listing. and they named it yahoo, after rednecks. yahoos. >> yahoo was an exercise in

organizing the internet. it quickly became the leading way to find things, and it was a directory-based system. it wasn't a search-based system. the idea was to curate the whole blood. >> wall street now values yahoo at around 700 million dollars, even though the company is barely profitable. >> with the success of netscape and the growth of the digital upstarts, yahoo. there was this energy that was not. >> it's not really silicon valley versus what's going up in washington. it's more mankind versus microsoft. so silicon valley is just one outpost against the evil empire to the north. >> this is silicon valley, the heart and soul of the nation's computer business. here, microsoft is respected and feared as a powerful giant whose every footstep sends shivers through the entire industry. >> there's this emerging war, basically, between the silicon valley culture buildup around the web and the microsoft

culture up in redmond, and it's not just a cultural clash, but an economic clash, ecological clash, a clash for power. >> bill gates had to turn microsoft, like a supertanker, around to have it address the internet. and the way they did that was by coming up with internet explorer, which they presented as the world's best browser. it wasn't. you know, microsoft stuff is never the best. but it was well marketed, and it was pushed, and they had a lot of money behind it. >> here came microsoft with its own version of a web browser built into windows 95. their intention was to kill netscape as the browser and make internet explorer its replacement. >> five, four, three, two, one, zero! >> a consumer feeding frenzy. many computer stores like this one in miami opened at the stroke of midnight so customers could be the first to get their hands on windows 95.

>> check out windows 95! >> it seems like an awful lot of us over a single product, but the product will have a huge impact, not just on microsoft, but on the global computer industry. >> this is jennifer aniston, i'm matthew perry, we are here to see a bill gates about a possible starting wall in the video guide to microsoft windows 95. >> all of the employees of microsoft have been invited to a huge party in a tent over there on the microsoft campus, and guess what song we could hear blaring out of there? you got it, rolling stones start me up. >> windows 95 was the most successful software launch to this day. everybody, whether they really wanted to or not, went out and got windows 95. >> getting the rolling stones to allow their music to be used in the ad launch tonight is a sign of a company at the peak of its powers. the challenge for microsoft is to stay there. with the race now on to exploit the internet, it may soon be microsoft turned to fear the

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>> apple, computer pioneer in the personal computers and software business, has fallen on hard times after reporting a big quarterly loss. it decided to lay off 1300 workers. >> how do you feel about what happened to apple? did it have to turn out the way

it did? >> it's hard to predict these things. >> this is not a subject that unfamiliar to you. >> yeah, it is. it's sort of ancient history to me right now. i don't really think about the stuff anymore. apple and microsoft duke it out, and netscape and microsoft duke it out. to me, is a spectator sport. >> in the mid-1990s, apple had a couple more ceos, none of whom really grasped division of apple. as a result, the company did worse and worse and worse as the decade progressed. >> with big losses in the last quarter, with profit margins shrinking, apple seems destined for a takeover. this is a computer that even has fan clubs. >> i just love the apple, and i always have, and i can't really say why. >> everyone's rooting for apple to somehow survive, but it wasn't an all clear that apple would be around at the end of the 1990s. >> the troubled apple computer company may return to its core in an effort to boost sagging sales. apple reportedly will name its cofounder, steve jobs, as its

new chairman. jobs would replace a chairman who was ousted earlier this month. >> steve came over to apple, sold next to apple for $400 million. he had no ambitions at apple at all. but steve jobs was watching apple flounder, and he just couldn't help himself, and so he remade the company the way he wanted. and there was no one to oppose him, because the company was exhausted. >> steve jobs had exactly the abrasive, but incisive, personality that apple needed at that point. they needed somebody to come in, say, kill that project, kill that project, that's stupid, consolidate that, and focus the company. >> i'd like to announce one of our first partnerships today, a very, very meaningful one. and that is one with microsoft. we are very, very happy about it. we are very, very excited about

it. and i happen to have a special guest with me today, via satellite downlink. >> i don't think steve jobs has ever experienced, you know, before or after that, just people going, boo, no. microsoft represented everything that these hard-core apple fans hated. >> if we want to move forward, and see apple healthy and prospering again, we had to let go of a few things here. we have to let go of this notion that, for apple to win, microsoft has to lose. okay? >> there was an alliance, now, between these two former archrivals, and microsoft was going to invest the hundred and $50 million in apple, but more important, from bill gates's point of view, was that apple would include microsoft's browser in all macintoshes. that was the last piece. now, he had domination of the

browser world. >> microsoft says internet explorer just makes it easier to get around the web. but when you hit a button to access services for travel, entertainment, news, and life, you find sites owned by microsoft. >> and that's what the government is worried about. over the next few years, americans may be buying billions of dollars in goods and services through the internet. and that's a market too important, the government says, for one company to act as gatekeeper. >> the u.s. justice department asked a federal court today to find microsoft corporation a record $1 million a day. >> the complaint against the soft came from executives at netscape, a fast-growing software company that struck gold with its web browser, but microsoft began giving away its own browser and required computer manufacturers to offer it with windows. >> what they are able to do is they are able to illegally, we believe, use that monopoly power to block petition.

they are able to pay people to not use our software, and are able to do other things. >> a lot of people are saying the antitrust laws are outdated. technology wanted to force competition on its own. the counterargument is that when you begin to get lots of people to use your operating system, it becomes harder and harder for somebody else to break in to that industry. >> microsoft chairman bill gates goes before congress for the first time today. gait is expected to face tough questions from the senate judiciary committee. >> i want to, if you don't mind, ask, can i ask the audience one question, and get a little quick polio? how many of you use intel-based pcs in this audience? raise your hand? all right, of that group, who use pcs, how many of you use a pc without microsoft's operating system? that's a monopoly. that's a lot. that's 100%. >> it is fair to say that when you compete with people, you think, hey, we are going to have a better product. we are going to win the customer. we are going to do a good job here on these things. >> i think it's clear to most

people, like, oh, so that gates guy, he's not just, like, kind of a good-natured geek in glasses. he's another rich rapacious capitalist. >> security guards in belgium were caught flat footed today by cowardly sneak attack on one of the world basement. >> it's been a bad week for microsoft and its cyber meister, bill gates. yesterday, at the chicago debut of his much awaited windows 98 system, the program dramatically crashed it >> you'll notice that this scanner built -- oh. >> what's shaping up as one of the antitrust battles of the century, federal and state governments today sued microsoft, saying that computer software giant is predatory and scheming to crush all competition. >> microsoft used its monopoly power to develop a chokehold on the browser software needed to access the internet. >> i don't think bill gates recognized the seriousness of

the situation. this was a case that simply wasn't going to go away. >> worst case, they'll ask us to create a crippled product, and that would be too bad. that would really hold us back, so we are, we are quite confident that won't happen. >> the government tried to avoid this trial in every way they could. but once bill rejected every settlement offer, the world just changed, because it was like, okay, now we are going to court. the government not be good at some things, but it's really good at litigations, and when it decides it's going to win a lawsuit, you are going to face a formidable adversary. o spac. wait a minute. wait a minute. there's one going up now! how many of these guys are there? apartments-dot-com. the place to find a place.

age is j ust a number. >> you know what i say to all the other titans of tech who are making such a fuss and launching themselves into space? i put millions of people into spaces for years. wait a minute, wait a minute. there's one going up now. how many of those guys are there? ost® high protein. hitting the road, not all 5g networks are created equal. t-mobile covers more highway miles with 5g than verizon. t-mobile has more 5g bars in more places than anyone. another reason t-mobile is the leader in 5g. hey, did i tell you i bought our car from carvana? yeah, ma. it was so easy. i found the perfect car under budget too! and i get seven days to love it or my money back... i love it! [laughs] we'll drive you happy at carvana. there's a monster problem and our hero needs solutions. so she starts a miro to brainstorm. “shoot it?” suggests the scientists. so they shoot it. hmm... back to the miro board.

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i'm jessica schneider at the supreme court, and -- cnn. >> it's been 10 months since a new management team took over at apple. and because of their hard work, i'm really pleased to report to you today that apple is back on track. and -- today, i'm incredibly pleased to introduce imac, our consumer product. this is imac. so -- >> the imac was a computer that was meant to look like something you would want people to see in your house. it ushered in this new era,

where design started to matter. >> the imac was sexy. i had a blue one, it had carved, it was built like a sports car. when people think of computers, they think of boring, they think of bays, they think of it utilitarian. apple made it fun. >> you can take it home, take it out of the box, and be cruising the internet within 10 minutes. and that's not something you can do in any other computer we know of. >> they added software to make it easier to connect to the internet. so the i in and was for internet. >> it changed how people thought of apple, and changed how people perceive what had been a dying company. suddenly, people saw that there was a spark here. >> and the world of computers, it's kill or be killed, and the original whiz kid was thought to be dying an early death. but guess what? at his back. >> a year ago, nobody would have predicted this. steve jobs, the headman at apple computer, hailed as the

visionary hero who brought the company back from the verge of extinction. >> in 4 1/2 months, imac has become the number one selling computer in america. >> bill gates ultimately represents that computer genius entrepreneur. steve jobs represents the entrepreneur's artist. >> you can say what you want about steve jobs, but he knew how to make people believe. >> in federal court in washington, d.c. today, a case of legal hardball and computer software. the u.s. government set out to prove that computer industry giant microsoft tried to bully the competition illegally into submission or out of business. >> as microsoft and justice department lawyers came to do battle at the federal courthouse, a bill gates impersonator showed up, adding it's a real touch. inside the courtroom, the real bill gates, on videotape, under oath, in a deposition taking in august. >> the thing about a deposition is that the only thing that the witness can really do is to sit there and tell the truth, simply and directly. the first two hours of

deposition was, quite unexpected. >> from the stuff you've given me here -- >> just read. >> i don't know in my present recollection. what do you mean by internet software? the full breadth of your question -- >> this person who i know is brilliant and articulate and passionate is withdrawn, playing word games, being evasive, doing everything that makes him look like he is not confident in his position. >> you recognize that this is a, a document produced from microsoft files? do you answer? >> no. >> you don't? >> well, how would i know that? >> david boyce, defendant litigator. he has a photographic memory. he would ask a gates, in the deposition, do you ever remember saying this? no, i never would say something like that. voice, without looking at notes, would say, would you call up document 3021, please?

>> did you know that microsoft people were meeting with netscape before they actually met? >> i don't recall knowing in advance. >> government lawyer david boyce revered an internal microsoft memorandum written by gates three weeks before that meeting. i think there is a very powerful deal of some kind we can do with netscape, gates wrote. "we could even pay the money as part of the deal, buying some piece of them or something.". >> when i cover the trial, one of the things judge said to me is, he didn't believe bill gates, and that deposition was very instrumental in shaping the judges decision. >> i've never seen a stamp like that, i've never used a stamp like that. >> haven't you seen stamps like that in every single one of the documents that you've been shown during this deposition? >> can you get, get me all the exhibits? >> just a waste of time. >> it is a waste of time. >> technology is hard to understand. their pitch to the judge was, trust us. we are doing what we are doing for the consumer. the deposition made him, and

the company, look like they were not trustworthy. >> because this deposition, and the snippets of it that played out day after day on national television, it was an incredibly precipitous decline in how most people viewed bill gates. >> he was an environment unlike almost every other environment in which he operates. he did not control. no witness controls a deposition. no matter how rich, no matter how powerful. every witness has to sit there and answer questions. >> in words the presently blunt, judge thomas penfield jackson declared microsoft a monopoly. lawyers from the justice department in the 19 states that sued microsoft immediately claimed victory. >> microsoft is a monopolist, and it engaged in massive anticompetitive practices. >> it drove bill gates crazy that the government was portraying him as some kind of evil force. was he ruthless as a businessman? yes. did he see himself as a ruthless businessman?

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>> there is a lot of chat about technology in business. you'd expect that. but some of the conversation might surprise you. it is not just tech talk. they are talking about sexy. >> what she does is she loads pictures, mostly x-rated pictures, into her computer, and then customers, anywhere in the world, can call up and say, on to their home computer, this list. 15,000 descriptions of notice in language that's not always suitable for tv. >> pornography is always the first to make money on any new technology, and not just technologies and computers. i mean, since the beginning. >> laura's customers pay to transfer these photos from her computer through the phone line to their computer. >> okay, here it comes. >> okay, how do i know -- okay, so they don't have -- you didn't tell me that. i need to stop sweating. >> the adult industry was very

interested in figuring out how to make credit cards work. that had benefits for online commerce. it boosted consumer acceptance of online credit card use. >> our little shopping carts that we now use are invented by pornographers. what was not known was whether or not somebody could set up a website and actually make money. and the proof of concept of that was pornography. >> for the most part, entrepreneurs have not figured out a way to make profit on the internet. that is, until ebay came along. >> peer only i started the auction site as a hobby. three years later, it has a market value of close to $6 billion, and is a superstar on wall street. ebay makes its money by charging the list and item, then takes a small percentage of the final selling price if it sells. >> if you've got an item you want to sell, like a 1967 green hornet lunchpail, for example, you write up a brief description, and a digital photo, and decide on an opening

bid. >> ebay really changed everything, and not because what they were offering was so incredible and revolutionary. essentially, what they were doing was, they were automating the middleman. >> 600 million hits a month. okay? that's a lot of people. >> all right. >> how do you stop the unscrupulous? >> problems like that are really, very, very rare on ebay. it's all based on trust. >> one thing ebay pioneered was this idea that we rate each other, so that future transaction participants can see whether you're a good person to deal with or not. it's in your financial interest to be looked up to and respected as a trustworthy transactional partner. >> i'm nbc news, we are going to talk about the supercars of the stock market, those red-hot internet stocks. nobody's, in some cases, that didn't even exist a few years ago, are now trading in the stratosphere. >> the whole.com bubble of the late 90s was based on this idea that what counted was

nonprofit, what counted was eyeballs. if you could get enough people using your stuff, you would figure out a way, organically, from that, to make a profit. >> the daily volume, 3.7 million shares, we are almost to $2 billion company. >> people love these stocks. anything that has., or net in its name, it goes like hotcakes. >> it's billed as the earth's biggest bookstore. not just the countries, but the earth. but you can't shop there unless you have a computer. it's a virtual bookstore. >> books, books, and more books. that's what they do at amazon.com. >> if you were to print the amazon.com catalog, it would be the size of seven new york city phonebooks. >> in the early '90s, jeff bezos looked at what the internet could be, and he decided that the internet could be anything. >> basis started amazon.com at

this modest ranch home in seattle in 1994, less than five years later, his idea of selling books on the internet has grown into a multibillion dollar business. >> the largest physical bookstores only carry about 175,000 titles. amazon.com has 2 1/2 million titles in its online had a log. there's no way to have 2 1/2 million title physical bookstore. >> jen 24 understood that it would take decades to create this infrastructure of shipping and warehouses. he had this vision of completely upending the retail business. >> couple of things we had to get to, which is often said about your company. you are losing money. >> i can tell you that i think it's good that we are losing money right now. it's important to amazon.com on a sunday, in the future, in the long term -- >> we just like to know what day -- >> you can't be the everything store unless you are absolutely gigantic. chanters philosophy was, get big fast. earning money, making a profit, that'll come later. for now, let's become the hundred pound gorilla. >> this time, more and more people are going to do more and

more of their shopping online. it's so much mark convenient. the convenience is going to make this the year the shopping really comes of it on the internet. >> this is the time that allowed you to make choices as a consumer without gatekeepers choosing things for you. you could decide, i want that, and you'd get it. you don't live in a big city? you can still get big city stuff. >> a worldwide computer network called the internet has inspired more movies than any big deal technological fads since, oh, the city radio boom. the internet itself, however, is definitely exploding. >> it hit, and within, like, two years, it's become so powerful. >> we are sitting on the most perfect beach in the world, and all they can think about is -- a >> where can i hook up my modem? >> in 1999, we are culturally, socially, financially, quite dependent on the internet. >> in washington today, a special senate committee is preparing to release a fairly alarming report on the y2k

millennium computer problem. they call it one of the most serious and potentially devastating events the nation has ever encountered. >> the brains of most computers, the chips that do the thinking, have tiny, built in clocks. many register the year with only the last two digits, assuming the first two are always 19. >> the problem was not the computer would think that it 1800. the problem was, it wouldn't know what to do. it would just break down and go, can't process this. >> it could trigger widespread computer failures, blackouts, and breakdowns of everything from home appliances to the global financial system. >> if we left things as they are right now, the military would effectively shut down. >> the pentagon will spend at least $4 billion to diffuse the millennium bomb. pentagon officials are confident they'll do it. but critics claim they started too late, and those thousands of fixes won't be done in time. >> many states have not yet updated their computers that run programs, such as medicaid and food stamps. and if it's that millions of families rely on.

>> on new year's eve, 1999, i was prepared for the world to shut down. >> for a growing number of people, the year 2000 is not a milestone, as much as it is a sign of some sort of impending chaos. >> at home, i got lots of water, generator, flashlights, batteries, canned foods. >> so what do you think is going to happen? >> i think there's going to be riots. >> get ready, one of the books, computer failures will shut down electric utilities, prison gates will swing open at midnight, terrorist attacks will occur in larger cities, and wild dog packs will roam the streets. and many of these books recommends the filing weapons as a precaution. >> i just wanted to be prepared in case, you know, anything happens for that can scale across all your clouds... we got that right? yeah, we got that. it's easier to be an innovator.

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now, if you are just joining us, good morning. and let us assure you all is well. apocalypse is not now. the sky is not falling. the dreaded millennium bug, bugged out. >> for the most part, life went on as normal. the sun came up, people watches morning television and eat their wheaties. >> $100 billion spent correcting y2k. it amounts to $65 per taxpayer. >> part of the reason the disaster didn't occur is

because the government and corporations realized the problem and spent months in intensive preparation for that moment. >> it was a big deal. a lot of energy spent. a lot of fear. big nothing. >> good afternoon. microsoft was founded 25 years ago. and i have had the same job as ceo during that entire 25 year period. today, steve is going to step up to a new role and he'll be ceo of microsoft. >> by the time this trial was over, microsoft ended up settling. >> does the government's case against microsoft have anything to do with this change in leadership? >> absolutely not. if anything, this change underscores what a dynamic competitive business we have.

>> bill gates had been very successful. he had an enormous amount of money. he may very well have thought given what he had already accomplished, the highest and best use of his remaining years was to spend that money helping humanity. >> it was just a few months back. if your company ended in dot com, it was a good thing. but at the end of this brutal week on wall street, analyst bubbles think it is ready to burst. >> a year ago, investors were so eager to buy into the internet, they were happy ignoring traditional measures of success. sales, profits, growth. but reality has set in. >> these upstarts. they say we are worth billions of dollars. >> when the venture capitalist stopped putting money in, you could time the bubble. if we all believe this fantasy,

it works. if some of us stop believing it is a prelude to its failure. >> most dot com retail companies will be out of business by next year eliminating 25,000 out of 30,000 internet companies. >> what sort of message do you have for all of us as we look at what's happening to the stock market? >> don't invest in dot coms? >> the internet opened up a lot of things for people. made things easier for people and that didn't change. bubble or no bubble. >> with more than a billion web pages out there, it is no wonder the most common activity is still searching. it hadn't been much new in the search engine field for years until something called google came along. >> a traditional search engine will take your search terms and say which pages have those terms. google goes way beyond that.

google will say what do other web pages say about this page? >> google captured the entire web and they made a map of what linked to what and found things with an accuracy that no one imagined would be possible. >> turned out that google rather than netscape was the one that eclipse microsoft and by the end of the decade, netscape is gone. netscape and google are part of the same thing. >> the rate of change in our lives has grown faster and fasters. the zeros and ones of computer language are transforming every part of our lives. >> you have the little ones running around to go to my computer and grocery shop. it's incredible to be able to do that. >> what i found was another world. a world of caring, concerned people. >> once you become familiar with it, it becomes a friend. companion. >> you have a sense of

possibility that geography used to deny you. without moving yourself. the world would come to you. >> any student could call it the picture ifs any book in the smithsonians. a specialist at a huge city hospital could diagnose patients. >> the web is incredibly exciting because it is the fulfillment of a lot of our dreams that the computer would not primarily be a device for computation but turn into a device for innovation. >> the changes are so profound. >> when we look back 100 years from now, this is when we will say everything changed. >> i wasn't prepared to translate that. as i was doing that little tease. that little mark with the a and the ring around it? >> at this. >> that's what i said. kay said she thought it was

about. >> or around. i had never heard it said and it sounded stupid. violence at nbc. i mean. what is internet anyway? >> a lot of people use it and communicate. they can communicate with nbc. can you explain what internet is, allison? we have to ask yourselves, when is the last time we talked about race with somebody of another race? if the answer is never, with we are part of the problem. >> you can have a black person killed with a video. and this is what you will get. >> this is a revolution. >> we have to increase the