According to reports, Gates will step down as board chairman, but will remain as a director. He will also be more involved in product development, where he is "weighing going to work at Microsoft at least one day a week".
The Wall Street Journal also reports that it was Nadella who requested for Gates to take on a bigger role, saying that it is what he needs to be successful. Gates is still very much respected at Microsoft and is still viewed by many as the company's true visionary.
Nadella is currently Microsoft's vice president of enterprise and cloud computing and Gates is said to be a strong advocate of his capabilities. The pair could successfully push Microsoft's idea of devices and services.