NeXT, Inc.
Company type	Private
Industry	Technology
Founded	1985; 41 years ago
Founder	Steve Jobs
Defunct	1997
Fate	Acquired by Apple Inc.
Headquarters	Redwood City, California, United States
Key people	Steve Jobs (CEO)
Products	NeXT Computer, NeXTcube, NeXTstation, NeXTSTEP operating system, OpenStep, WebObjects
Number of employees	530 (1993)

NeXT, Inc.—later known as NeXT Computer, Inc. and subsequently NeXT Software, Inc.—was a U.S.-based technology firm located in Redwood City, California. The company initially focused on producing computer workstations tailored for academic institutions and corporate clients before broadening its scope to include web software development. Established in 1985 by CEO Steve Jobs, who had been removed from Apple that same year, NeXT introduced the NeXT Computer in 1988, followed by the launch of the NeXTcube and the more compact NeXTstation in 1990. Although sales remained modest at roughly 50,000 units, the company’s pioneering work with object-oriented programming and graphical user interfaces left a lasting impact.

NeXT partnered with Sun Microsystems to create OpenStep, a programming framework that decoupled the application layer of the NeXTSTEP operating system for compatibility across different platforms. By 1993, NeXT discontinued hardware manufacturing to concentrate on promoting OPENSTEP for Mach, aiming to license it to other hardware producers. The firm also developed WebObjects, an early enterprise-level web framework recognized for its ability to generate dynamic web content despite its premium pricing.

Apple acquired NeXT in 1997 through a $427 million transaction that included 1.5 million Apple shares. This acquisition facilitated Steve Jobs’s return as an advisor and led to the integration of OPENSTEP with Apple’s classic Mac OS, resulting in the development of Rhapsody and eventually Mac OS X. Technologies originating from NeXT influenced notable software such as the inaugural web browser and popular video games like Doom and Quake.

Background

In 1985, Steve Jobs, co-founder and CEO of Apple, was heading the SuperMicro division responsible for the creation of the Macintosh and Lisa computers. These devices gained significant traction within academic settings due to Jobs’s active promotion efforts and Apple's University Consortium—a discounted program targeting educational institutions—which had generated more than $50 million in revenue by early 1984.

Jobs encountered Nobel Prize winner Paul Berg at a Silicon Valley luncheon honoring French President François Mitterrand. Berg, concerned about the high costs associated with recombinant DNA research conducted in wet labs, proposed that Jobs leverage his influence to develop a specialized "3M computer" designed specifically for higher education purposes. This concept captured Jobs’s interest amid escalating challenges at Apple.

The SuperMicro division struggled to deliver updated Macintosh models and much of the Macintosh Office software suite, leading to declining sales and substantial inventory write-offs amounting to millions. In 1985, John Sculley removed Jobs from his executive position, appointing Jean-Louis Gassée as his successor. Jobs attempted to regain leadership through internal power maneuvers, but the board supported Sculley instead. Consequently, Jobs embarked on an Apple-sanctioned business trip across Western Europe and the Soviet Union.

Original NeXT team

Following his marginalization at Apple in September 1985, Jobs resigned to create a new computing company. He intended to recruit several former colleagues from Apple's SuperMicro division and initially assured that NeXT would avoid direct competition with Apple, even contemplating licensing Macintosh designs. After consulting with educational purchasers nationwide, NeXT formulated specifications for a workstation that balanced sufficient processing power for laboratory simulations with affordability suitable for dormitory environments. Shortly thereafter, Apple filed a lawsuit against NeXT in September 1985 alleging misuse of insider knowledge; however, this case was dismissed before reaching trial. Jobs dismissed skepticism about a small startup competing against large corporations, emphasizing NeXT’s capacity for innovation.

In 1986, Jobs engaged graphic designer Paul Rand with a $100,000 contract to craft NeXT’s visual identity. Rand produced an extensive branding package encompassing logo design elements as well as refining the spelling of the company name to NeXT. Jobs appreciated Rand’s strategic guidance in shaping a distinctive corporate image for NeXT.

Initial generation

By mid-1986, NeXT realigned its business approach to encompass both hardware and software development. Hardware efforts were overseen by cofounder Rich Page, formerly the lead of Apple's Lisa team, while Avie Tevanian took charge of the operating system initiative, NeXTSTEP. The first production facility, established in Fremont, California in 1987, had the capacity to produce 150,000 units annually. The company's debut workstation, the NeXT Computer, commonly referred to as "the cube" due to its unique magnesium cubic enclosure crafted by Hartmut Esslinger of Frog Design, was primarily aimed at the educational sector.

In 1987, investor Ross Perot contributed $20 million for a 16% ownership share and joined NeXT's board in 1988, offering both strategic guidance and financial support. NeXT partnered with Adobe to integrate Display PostScript (DPS), significantly enhancing graphical capabilities within the NeXTSTEP windowing environment.

Initially slated for release in 1987 at a $3,000 price point, the NeXT Computer ultimately launched in October 1988 amid considerable industry anticipation. Early sales concentrated on American universities, with a base price of $6,500 in 1989. Steve Jobs highlighted the system's cutting-edge technology despite postponements.

The machine was equipped with a 25 MHz Motorola 68030 processor (after supply complications with the initially intended Motorola 88000 RISC chip), supported up to 64 MB of RAM, and featured a pioneering 256 MB magneto-optical (MO) drive—the first computer to adopt this storage medium—alongside hard drives reaching 660 MB and a 17-inch MegaPixel grayscale display (1120×832 pixels). It also incorporated a Motorola 56001 DSP chip for advanced audio processing capabilities and software such as the Music Kit.

While innovative, the MO drive's slower performance and limited capacity restricted speed and file sharing without network connectivity. Canon manufactured these MO drives and invested $100 million for a 16.67% stake in NeXT in 1989, valuing the company at approximately $600 million. This alliance broadened NeXTSTEP's reach via Canon's object.station PC line running NeXTSTEP on Intel platforms; Canon additionally acted as NeXT’s distributor within Japan.

NeXT modified its sales strategy by collaborating with Businessland—formerly a Compaq reseller—for international distribution, moving beyond direct sales focused solely on educational institutions. Businessland’s founder anticipated that NeXT’s sales would exceed Compaq’s within one year.

The NeXT Computer became commercially available in 1990 at a price of $9,999. In June 1991, Ross Perot stepped down from the board to concentrate on his software integration company, Perot Systems.

Second generation

In 1990, NeXT introduced its second-generation workstations: an updated NeXTcube and the NeXTstation, colloquially called "the slab" due to its slim profile. To avoid unfavorable comparisons with rival products, Jobs discouraged referring to it as a "pizza box." Although initially planned to include a 2.88 MB floppy disk drive, NeXT opted instead for CD-ROM drives because of floppy disk costs and market trends favoring optical storage; this decision contributed to setting new industry standards for data storage media. The systems supported color graphics through the NeXTstation Color model and the NeXTdimension graphics processor. Featuring the Motorola 68040 CPU, these machines offered improved speed and reduced costs compared to their predecessors.

By 1992, "Turbo" variants of both models were released with a faster 33 MHz 68040 processor and expanded RAM capacity up to 128 MB. That year, approximately 20,000 units were sold—including those with upgraded motherboards—generating revenue of $140 million. This financial success encouraged Canon to inject an additional $30 million to maintain operations.

Altogether, around 50,000 units were sold during this period, including machines delivered to the National Reconnaissance Office. Strategically, NeXT planned a transition toward high-performance Reduced Instruction Set Computing (RISC) platforms through its NeXT RISC Workstation (NRW). Originally designed around the Motorola 88110 processor, the NRW was later redesigned to incorporate dual PowerPC 601 processors due to uncertainties regarding Motorola’s commitment to the 88000 line amid the AIM alliance’s shift toward PowerPC technology.

1993–1996: NeXT Software, Inc.

Toward the end of 1991, NeXT initiated the process of adapting the NeXTSTEP operating system for IBM PC compatibles powered by Intel 80486 processors, completing version 3.1 (NeXTSTEP 486) by mid-1993. Alongside this, NeXTSTEP 3.x was also made compatible with PA-RISC and SPARC architectures, resulting in four distinct editions: NeXTSTEP/NeXT (designed for NeXT hardware), NeXTSTEP/Intel, NeXTSTEP/PA-RISC, and NeXTSTEP/SPARC. Although the latter three variants held only a minor share of the market, several organizations—including First Chicago NBD, Swiss Bank Corporation, and O'Connor and Company—adopted NeXTSTEP due to its sophisticated programming framework. Additionally, various U.S. government agencies such as the Naval Research Laboratory, NSA, DARPA, CIA, and National Reconnaissance Office utilized the system. Some PC clone manufacturers offered machines preinstalled with NeXTSTEP on Intel platforms, examples being Elonex NextStation and Canon object.station 41.

In 1993, NeXT discontinued its hardware division and rebranded itself as NeXT Software, Inc., resulting in layoffs of approximately 230 out of 530 employees. The company endeavored to sell its hardware segment to Canon; however, the agreement did not materialize, leading to the cessation of PowerPC development efforts. That same year, Sun Microsystems invested $10 million into NeXT with the aim of incorporating NeXT software into future Sun systems. Collaborating with Sun, NeXT developed OpenStep—an application programming interface that separated the application layer to allow compatibility across multiple operating systems. In 1994, Microsoft partnered with NeXT to create an OpenStep port for Windows NT; however, this version was never commercially released.

A developers' conference held in January 1994 provided attendees with a software package that included NEXTSTEP 3.2.

Stepstone (originally Productivity Products International), established by Brad Cox and Tom Love in 1983 and recognized for its work on Objective-C, sold the trademark and rights for Objective-C to NeXT in April 1995. Stepstone retained a license to continue marketing Objective-C products independently. These rights were subsequently acquired by Apple alongside NeXT.

Following its exit from hardware manufacturing, NeXT concentrated on OpenStep-related products such as OpenStep Enterprise for Windows NT and introduced WebObjects—a platform designed for building large-scale dynamic web applications. Despite its initially steep price tag of around $50,000, WebObjects proved profitable and was among the pioneering web application servers enabling interactive content tailored to user input. Prominent clients included Dell, Disney, Deutsche Bank, BBC, Ford, Nissan, and later Apple itself for powering its iTunes Store and online Apple Store.

1997–2006: Integration into Apple

On December 20, 1996, Apple revealed its plan to acquire NeXT for a total of $427 million, comprising cash, shares, stock options, and assumed debt. Following this agreement, Steve Jobs, the founder of NeXT and a pivotal figure in business leadership, rejoined Apple as a consultant. The primary objective was to utilize NeXTSTEP as the basis for replacing the outdated classic Mac OS. Although Jobs favored receiving cash payment, then-CEO Gil Amelio persuaded him to accept 1.5 million Apple shares to reinforce the legitimacy of the acquisition. The transaction was officially completed on February 7, 1997.

By the year 2000, Jobs assumed the permanent position of CEO and steered Apple's strategic direction until his departure in August 2011. During a corporate restructuring under Jobs’s guidance, several executives from NeXT became members of Apple’s board. Apple initiated the process of adapting the OPENSTEP operating system to PowerPC hardware, releasing this new platform under the codename Rhapsody. This included the "Yellow Box" API derived from OPENSTEP alongside a "Blue Box" component designed to maintain compatibility with legacy Mac OS applications.

Rhapsody evolved into Mac OS X Server 1.0 by 1999, followed by the debut of the first consumer edition, Mac OS X 10.0, in 2001. The Yellow Box API transformed into Cocoa, while Blue Box was rebranded as the Classic Environment to allow smoother operation of older software. Additionally, Apple introduced Carbon—an updated API that enabled native support for existing Mac OS programs without relying on Blue Box.

Several interface features originating from NeXTSTEP—such as the Dock, Services menu, Finder’s Column view, and Cocoa’s text system—became fundamental elements of Mac OS X’s user interface. Its architecture-agnostic design supported multiple processor platforms: PowerPC (phased out by 2009), x86 (adopted in 2006 during Apple’s shift to Intel processors), and ARM (introduced in 2020 with Apple Silicon). These transitions illustrate Apple's adaptive business strategies and global operations in response to evolving technological trends.

Corporate culture and community

Steve Jobs cultivated a unique corporate environment at NeXT that prioritized a "community" ethos over conventional hierarchical structures. Until the early 1990s, salary scales were limited to two tiers: $75,000 for employees hired before 1986 and $50,000 for those joining later; this occasionally resulted in managers earning less than their subordinates. Subsequently, formal performance evaluations and biannual salary increases were implemented. To foster openness, all staff members could access payroll details, although few took advantage of this transparency. Initially, NeXT’s health insurance plans extended coverage to unmarried and same-sex partners; however, these benefits were later withdrawn due to insurance complications. Unlike common Silicon Valley practice, payroll was disbursed monthly in advance.

NeXT’s main office was located at 3475 Deer Creek Road in Palo Alto within a building designed by I. M. Pei featuring glass and concrete construction, hardwood flooring, and large communal worktables for assembly tasks. The company employed a just-in-time (JIT) inventory system and outsourced key components such as mainboards and cases for on-site assembly. The open-plan workspace included only Steve Jobs’s private office along with several conference rooms.

As NeXT grew, it leased additional office spaces at 800 and 900 Chesapeake Drive in Redwood City—also designed by I. M. Pei—which were outfitted with high-end furnishings including $5,000 chairs and $10,000 sofas as well as an iconic “floating” staircase lacking visible supports.

After NeXT vacated these Redwood City offices, the Palo Alto facility was occupied by Internet Shopping Network (a subsidiary of Home Shopping Network) followed by SAP AG. The Redwood City locations were subsequently used by ApniCure and OncoMed Pharmaceuticals Inc.

NeXTWORLD magazine was launched in 1991 as the only major publication dedicated exclusively to NeXT products and software. Initially edited by Michael Miley and later by Dan Ruby, it was produced in San Francisco but ceased publication after four volumes in 1994. From 1991 through 1994, NeXT also hosted its annual NeXTWORLD Expo developer conferences at various San Francisco venues where Steve Jobs delivered keynote presentations.

Legacy

While the company did not achieve substantial profitability, its impact on the computing sector was considerable. The introduction of the NeXTcube and NeXTSTEP in 1988 helped bring object-oriented programming and graphical user interfaces into wider recognition, influencing industry standards that many competitors later sought to replicate.

Microsoft's Cairo initiative in 1991 drew inspiration from NeXT’s innovations, attempting to integrate comparable object-oriented UI capabilities into Windows NT. Although the Cairo project was eventually discontinued, several of its concepts were incorporated into other Microsoft developments.

By 1993, Taligent emerged as a contender in the realm of object-oriented operating systems and was frequently measured against NeXT’s more advanced platform. Nevertheless, Taligent’s 1995 debut was generally regarded as belated and insufficient when compared to NeXT’s already established market presence.

NeXT’s environment facilitated groundbreaking software creation: Tim Berners-Lee developed the inaugural web browser and server on a NeXT machine in 1990. Additionally, id Software utilized NeXT systems to produce landmark titles such as Doom and Quake. The platform also attracted commercial software like Altsys Virtuoso (which later became Aldus FreeHand) and Lotus Improv, underscoring its value to professional software developers.

External links

NeXT