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OMara - The Code: Silicon Valley and the remaking of America

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OMara The Code: Silicon Valley and the remaking of America
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The true, behind-the-scenes history of the people who built Silicon Valley and shaped Big Tech in America Long before Margaret OMara became one of our most consequential historians of the American-led digital revolution, she worked in the White House of Bill Clinton and Al Gore in the earliest days of the commercial Internet. There she saw first-hand how deeply intertwined Silicon Valley was with the federal government, and always had been, and how shallow the common understanding of the secrets of the Valleys success actually was. Now, after almost five years of pioneering research, OMara has produced the definitive history of Silicon Valley for our time, the story of mavericks and visionaries, but also of powerful institutions creating the framework for innovation, from the Pentagon to Stanford University. It is also a story of a community that started off remarkably homogeneous and elitist and stayed that way, and whose belief in its own mythology has deepened into a collective hubris that has led to astonishing triumphs as well as devastating second-order effects. Deploying a wonderfully rich and diverse cast of protagonists, from the justly famous to the unjustly obscure, across four generations of explosive growth in the Valley, from the Forties to the present, OMara has wrestled into magnificent narrative form one of the most fateful developments in modern American history. She is on the ground with all of the key tech companies, and chronicles the evolution in their offerings through each successive era, and she has a profound fingertip feel for the politics of the sector, and its relation to the larger cultural narrative about tech as it has evolved over the years. Perhaps most impressively, OMara has penetrated the inner kingdom of tech venture capital firms, the insular and still remarkably old-boy world that became the cockpit of American capitalism and the crucible for bringing technological innovation to market, or not. The transformation of big tech into the engine room of the American economy and the nexus of so many of our hopes and dreams-and increasingly nightmares-can be understood, in Margaret OMaras masterful hands, as the story of one California valley. As her majestic history makes clear, its fate is the fate of us all.;Start up arrivals -- Endless frontier -- Golden state -- Shoot the moon -- Networked -- The money men arrivals -- Boom and bust -- Product launch arrivals -- The olympics of capitalism -- Power to the people -- The personal machine -- Homebrewed -- Unforgettable -- Risky business -- Go public arrivals -- Storytellers -- California dreaming -- Made in Japan -- Big brother -- War games -- Built on sand -- Change the world arrivals -- Information means empowerment -- Suits in the valley -- Magna Carta -- Dont be evil arrivals -- The internet is you -- Software eats the world -- Masters of the universe.

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A LSO BY M ARGARET OM ARA Pivotal Tuesdays Four Elections That Shaped the - photo 1
A LSO BY M ARGARET OM ARA

Pivotal Tuesdays: Four Elections That Shaped the Twentieth Century

Cities of Knowledge: Cold War Science and the Search for the Next Silicon Valley

PENGUIN PRESS An imprint of Penguin Random House LLC penguinrandomhousecom - photo 2

PENGUIN PRESS

An imprint of Penguin Random House LLC

penguinrandomhouse.com

Copyright 2019 by Margaret OMara

Penguin supports copyright. Copyright fuels creativity, encourages diverse voices, promotes free speech, and creates a vibrant culture. Thank you for buying an authorized edition of this book and for complying with copyright laws by not reproducing, scanning, or distributing any part of it in any form without permission. You are supporting writers and allowing Penguin to continue to publish books for every reader.

Photograph credits appear on .

LIBRARY OF CONGRESS CATALOGING-IN -PUBLICATION DATA

Names: OMara, Margaret Pugh, 1970 author.

Title: The Code : Silicon Valley and the remaking of America / Margaret OMara.

Description: New York : Penguin Press, 2019. | Includes bibliographical references and index.

Identifiers: LCCN 2019003295 (print) | LCCN 2019006563 (ebook) | ISBN 9780399562198 (ebook) | ISBN 9780399562181 (print)

Subjects: LCSH: Santa Clara Valley (Santa Clara County, Calif.)Economic conditions. | Business enterprisesCaliforniaSanta Clara Valley (Santa Clara County)

Classification: LCC HC107.C22 (ebook) | LCC HC107.C22 S33973 2019 (print) | DDC 338.709794/73dc23

LC record available at https://lccn.loc.gov/2019003295

Cover design: Christopher Brian King

Cover images: (top row) Steve Jobs, Andy Freeberg / Getty Images; Mark Zuckerberg, Rick Friedman / Getty Images; Bill Gates, PA Images / Getty Images; Sergey Brin, Justin Sullivan / Getty Images; (bottom row) Jeff Bezos, Ted Soqui / Getty Images; John Doerr, Ann E. Yow-Dyson / Getty Images; Andy Grove, courtesy of Intel Corp.; Frederick Terman, provided by the Stanford University Libraries

Version_1

To Jeff

Want to know why I carry this tape recorder? Its to tape things. Im an idea man, Chuck, all right? Ive got ideas all day long, I cant control them, its like, they come charging in, I cant even fight em off if I wanted to.

Night Shift (1982)

On behalf of the future, I ask you of the past to leave us alone. You are not welcome among us. You have no sovereignty where we gather.

J OHN P ERRY B ARLO W,

A Declaration of the Independence of Cyberspace, 1996

The machine that is everywhere hailed as the very incarnation of the new had revealed itself to be not so new after all, but a series of skins, layer on layer, winding around the messy, evolving idea of the computing machine.

E LLEN U LLMAN,

Life in Code, 1998

CONTENTS
LIST OF ABBREVIATIONS

ACM: Association for Computing Machinery

AEA: American Electronics Association

AI: Artificial intelligence

AMD: Advanced Micro Devices

ARD: American Research and Development

ARM: Advanced reduced-instruction-set microprocessor

ARPA: Advanced Research Projects Agency, Department of Defense, renamed DARPA

AWS: Amazon Web Services

BBS: Bulletin Board Services

CDA: Communications Decency Act of 1996

CPSR: Computer Professionals for Social Responsibility

CPU: Central processing unit

EDS: Electronic Data Systems

EFF: Electronic Frontier Foundation

EIT: Enterprise Integration Technologies

ENIAC: Electronic Numerical Integrator and Computer

ERISA: Employee Retirement Income Security Act of 1974

FASB: Financial Accounting Standards Board

FCC: Federal Communications Commission

FTC: Federal Trade Commission

GUI: Graphical user interface

HTML: Hypertext markup language

IC: Integrated circuit

IPO: Initial public offering

MIS: Management information systems

MITI: Ministry of International Trade and Industry (of Japan)

NACA: National Advisory Committee for Aeronautics, later superseded by NASA

NASA: National Aeronautics and Space Administration

NASD: National Association of Securities Dealers

NDEA: National Defense Education Act

NII: National Information Infrastructure

NSF: National Science Foundation

NVCA: National Venture Capital Association

OS: Operating system

OSRD: U.S. Office of Scientific Research and Development

PARC: Palo Alto Research Center, Xerox Corporation

PCC: Peoples Computer Company

PDP: Programmed Data Processor, a minicomputer family produced by Digital

PET: Personal Electronic Transactor, a microcomputer produced by Commodore

PFF: Progress and Freedom Foundation

R&D: Research and development

RAM: Random access memory

RMI: Regis McKenna, Inc.

ROM: Read-only memory

SAGE: Semi-Automatic Ground Environment

SBIC: Small Business Investment Company

SCI: Strategic Computing Initiative

SDI: Strategic Defense Initiative

SEC: Securities and Exchange Commission

SIA: Semiconductor Industry Association

SLAC: Stanford Linear Accelerator Center, later SLAC National Accelerator Laboratory

SRI: Stanford Research Institute, later SRI International

TCP/IP: Transmission Control Protocol / Internet Protocol

TVI: Technology Venture Investors

VC: Venture capital investor

VLSI: Very large-scale integration

WELL: Whole Earth Lectronic Link

WEMA: Western Electronics Manufacturers Association, later AEA

INTRODUCTION
The American Revolution

Three billion smartphones. Two billion social media users. Two trillion-dollar companies. San Franciscos tallest skyscraper, Seattles biggest employer, the four most expensive corporate campuses on the planet. The richest people in the history of humanity.

The benchmarks attained by Americas largest technology companies in the twilight years of the twenty-first centurys second decade boggle the imagination. Added together, the valuations of techs so-called Big FiveApple, Amazon, Facebook, Google/Alphabet, and Microsofttotal more than the entire economy of the United Kingdom. Tech moguls are buying storied old-media brands, starting transformative philanthropies, and quite literally shooting the moon. After decades of professed diffidence toward high politics, the elegant lines of code hacked out in West Coast cubicles have seeped into the political systems every corner, sowing political division as effectively as they target online advertising.

Few people had heard of Silicon Valley and the electronics firms that clustered there when a trade-paper journalist decided to give it that snappy nickname in early 1971. Americas centers of manufacturing, of finance, of politics were three thousand miles distant on the opposite coast. Boston outranked Northern California in money raised, markets ruled, and media attention attracted.

Even ten years later, when personal computers mushroomed on office desks and boy-wonder entrepreneurs with last names like Jobs and Gates seized the public imagination, the Valley itself remained off to the side of the main action. An ochre haze of smog hung over its tidy bedroom suburbs when the wind didnt blow right, its dun-colored office buildings were impossible to tell apart, and you were out of luck if you tried to order dinner in a restaurant past 8:30 p.m. One horrified British visitor called it the land of polyester hobbitry.

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