Responding to critics who say he hasn’t matched Hotmail’s success, Sabeer Bhatia says he defines achievement through gratitude rather than constant wins — stressing that with most startups failing, effort matters more than outcomes.
By AB Wire
Hotmail founder Sabeer Bhatia says that when he first conceived of the pioneering web-based email service, he faced a crucial decision: pursue patents to protect the idea, or focus on rapidly growing users and market share. He chose the latter — a move that helped make Hotmail one of the defining internet tools of the 1990s.
“When we first thought of web-based email, we had a choice: file patents to protect the idea, or chase market share and customers. Thankfully, we chose the latter,” Bhatia posted on X on Monday.
When we first thought of web-based email, we had a choice: file patents to protect the idea, or chase market share and customers. Thankfully, we chose the latter.
— Sabeer Bhatia (@sabeer) September 8, 2025
Bhatia, who was born in Chandigarh, India, co-founded Hotmail with Jack Smith in 1996. Just two years later, they sold the service to Microsoft in a landmark deal reportedly worth $400 million, a whopping amount at the time. Hotmail was later rebranded as Outlook, though over time competitors like Yahoo Mail (launched in 1997) and Gmail (2004) would surpass it in market dominance.
By December 1997, the service reportedly had around 8.5 million active users.
That rapid growth — from launch in mid-1996 to millions of users in less than two years — was one of the key reasons Microsoft purchased Hotmail in one of the largest internet acquisitions at the time.
Had Bhatia secured a patent, he might have gained stronger intellectual property protection, potentially allowing Hotmail to license the technology to others or block competitors like Yahoo Mail and Gmail. With a broad enough patent, Hotmail could have demanded royalties from future rivals such as Yahoo and Google, creating an additional revenue stream and making Hotmail not just a product but a platform.
Hotmail’s legacy, however, remains secure as one of the internet’s first major consumer email platforms, helping to define how millions of people communicated online at the dawn of the digital era.
After selling Hotmail, Bhatia went on to launch several ventures, though none matched the groundbreaking impact of web-based email.
Addressing critics on X, he noted that people often accuse him of “doing nothing after Hotmail,” as if success must be constant and uninterrupted. He countered that view, saying he chooses instead to focus on gratitude: with roughly 90% of startups failing, he feels fortunate that his very first one succeeded. True success, he added, is never guaranteed — only effort is within our control, a lesson civilizations have understood for centuries.
On X I get attacked for “doing nothing after Hotmail” – as if life must be a nonstop series of successes and if you’re not, you’re a loser. How about gratitude instead? 90% of startups fail. I’m just grateful my first one worked. Success is never in our hands, only effort is -…
— Sabeer Bhatia (@sabeer) September 8, 2025
On Sunday, Bhatia also shared a personal story on X about his journey to the United States. He recalled the summer of 1988, when he was interning at the Bhabha Atomic Research Center (BARC) in Mumbai. The scientist he worked under, who also claimed to be a soothsayer, predicted that Bhatia would finish his engineering degree at BITS Pilani and settle into a job earning ₹4,000 a month.
“I was crushed,” Bhatia admitted, noting that such a future was far from the one he imagined for himself. Just three weeks later, however, he received an acceptance letter from the California Institute of Technology as a transfer student to complete his bachelor’s degree in electrical engineering. “The rest, as they say, is history,” he wrote.
Summer of 1988, I was interning at BARC (Bhabha Atomic Research Center). The scientist I worked for was also a self-proclaimed soothsayer. Out of curiosity, I asked him: what does the future hold for me?
— Sabeer Bhatia (@sabeer) September 7, 2025
He told me: You’ll finish Engineering at BITS Pilani and get a job for ₹4,000/month.
I was crushed. That wasn’t the future I was dreaming of.— Sabeer Bhatia (@sabeer) September 7, 2025
3 weeks later, a letter arrived from Caltech. Acceptance. The rest, as they say, is history.
— Sabeer Bhatia (@sabeer) September 7, 2025
The California-based entrepreneur has been especially active on X in recent months, frequently posting commentary critical of Prime Minister Narendra Modi’s government. His remarks have touched on a wide range of issues, from India’s Goods and Services Tax (GST) to broader questions of development.
Bhatia also reflected on the importance of encouraging children’s ambitions. He noted that today’s youth aspire to build rockets, pioneer AI innovations, launch new companies, and even imagine new worlds. Instead of limiting them with narrow expectations, he urged, society should nurture and expand their imagination — because that is how a nation moves forward. His takeaway: never dismiss or diminish a child’s dream.
Kids today dream of building rockets, AI, new companies, new worlds. Let’s not limit them with our imagination. Let’s fuel theirs. That’s how a nation progresses. ✨
— Sabeer Bhatia (@sabeer) September 7, 2025