In the wake of Microsoft's collapsed bid for Yahoo!, Bill Gates spoke with Forbes.com on a Sunday afternoon in an exclusive interview to talk about Google, the future of Microsoft and why he likes being the underdog.

Evelyn Rusli: Now that the Microsoft and Yahoo! deal has come apart, what's your opinion on that, and what do you see for the future? Do you plan to perhaps bid again or look at different acquisition targets?

Bill Gates: Oh, that's not a good question for today--I'm at the Berkshire meeting and not commenting on Microsoft  things.

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OK. In terms of your involvement with Berkshire Hathaway, what does this weekend mean for you?

Well it's wonderful to come hear the latest from Warren Buffett and see the excitement about the company and the culture he's built. I'm lucky enough to be on the board and his success, because of his generosity, translates into the foundation being able to do more around the world. So it's wonderful to see the great business success he's having ... it's a record crowd and I love being here.

And as you retire from the day-to-day operations of Microsoft, what are you looking forward to in the next stage of your life?

I'll get to work full time at the foundation. Starting on July 1, I'll be out in developing countries more, visiting schools more, thinking about how we can have the highest possible impact both with [the distribution of] my wealth and Warren's.

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Can you comment on the future of Microsoft, and how you see the company competing against Google?

We love software, and search is one of the areas we do it in. It's fun to be an underdog in some ways and we think we can do a lot of innovative work

Any plans to stay competitive?

We'll be competing very effectively.

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