Microsoft and Apple are often, if not always, seen as each other's biggest competition as two of the biggest names in tech. People like to talk about which tech giant has the better products, the latest innovations, and whatnot.

But did you know that Microsoft and its founder, Bill Gates, once stepped in to help Apple out of bankruptcy?

It may come as a shock to many, especially those who would think Apple nearly reaching bankruptcy was the perfect opportunity for Microsoft to get rid of its competition. It really did happen. Microsoft did save Apple and we are about to tell you what happened.

Bill Gates, Microsoft Saved Apple From Bankruptcy

(Photo : JOHN MOTTERN/AFP via Getty Images)
BOSTON, UNITED STATES: Microsoft Chairman Bill Gates addresses the Macworld Expo in Boston via phone link after Steve Jobs (small on stage) announced 06 August he will join the board of directors of Apple. Jobs also announced that Microsoft is investing 150,000,000 USD to purchase non-voting stock of Apple forging a new alliance between the two rival companies.

Let us travel back in time to August 1997. At that time, Apple was struggling while Microsoft was the bigger, more successful company between the two. Bill Gates, who was the Microsoft CEO at the time, agreed to invest $150 million to bail Apple out of bankruptcy.

The announcement, which was made by the late Steve Jobs during the Macworld Boston conference that year, shocked and event upset many. According to an article by CNBC, Gates was even booed by the audience when he made an appearance in the conference via satellite.

The actual deal was, needless to say, more complicated that Microsoft simply giving Apple cash. An article by WIRED says that, while Jobs did get the cash he needed for his company, Microsoft got non-voting shares in return. Apple likewise agreed to drop a lawsuit against its competitor alleging that "Microsoft copied the look and feel of the Mac OS for Windows."

That is not all. Apple likewise agreed to make Internet Explorer the default browser on its computers, although it has been agreed as well that it would not be the only option users would get. Microsoft, on the other hand, agreed to support Office for the Mac for five years.

The Time Magazine Cover

Many, as previously mentioned, were in disbelief that Microsoft would help its own competitor stay in the industry. Contributing to the surreal moment is a cover that Time Magazine eventually published that featured the quote "Bill, thank you. The world's a better place."

Steve Jobs is also seen on the cover using his cell phone. The text on the cover adds that the quote was said by Jobs to Gates as they conversed on the phone.

You can view the cover of the magazine, which was posted online by Code Academy's Twitter account, below:

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What Gates and Jobs Had to Say About the Deal

Ten years after the deal that shocked the tech industry, both Bill Gates and Steve Jobs sat down for an interview to talk about it. Specifically, the interview took place during the D5 tech conference.

In the interview, Jobs said that what was happening to his company at that time was crazy and that Apple was in very big trouble, according to CNBC. Realizing how much trouble his company was in, he decided to move away from a competitive mindset and called Gates so that they could work things out.

"What was really clear was that if the game was a zero-sum game where for Apple to win, Microsoft had to lose, then Apple was going to lose," Jobs said during the interview.

"Apple didn't have to beat Microsoft. Apple had to remember who Apple was because they'd forgotten who Apple was," the late Apple founder added.

For his part, Bill Gates said that things ended up working out really well for both tech companies. "In fact, every couple years or so, there's been something new that we've been able to do on the Mac and it's been a great business for us," the Microsoft founder explained.

You can watch the interview below:

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