Two years older than Mr Gates, he persuaded him to drop out of Harvard to start up Microsoft, after the pair met in the computer room at school in Seattle.
His sister, Jody Allen, said in a statement: "My brother was a remarkable individual on every level.
While most knew Paul Allen as a technologist and philanthropist, for us he was a much loved brother and uncle, and an exceptional friend.
"Paul's family and friends were blessed to experience his wit, warmth, his generosity and deep concern."
SKY News.