Yes he did.
And where is your source?
The quote isn't as bad as people make it out to be...if he was talking about the computers at the time he was right. The true "alleged" quote is NOT people will never need MORE than 640k, it was:
640K ought to be enough for anybody.
HOWEVER, it has NEVER been sourced our quoted and is only hearsay. That doesn't mean it wasn't said but it means there is no PROOF he said. Gates also came out and denied the RUMOR.
from Wikipedia:
Often attributed to Gates in 1981. Gates considered the IBM PC's 640kB program memory a significant breakthrough over 8-bit systems that were typically limited to 64kB, but he has denied making this remark.[4] Also see the 1989 and 1993 remarks above.
I've said some stupid things and some wrong things, but not that. No one involved in computers would ever say that a certain amount of memory is enough for all time... I keep bumping into that silly quotation attributed to me that says 640K of memory is enough. There's never a citation; the quotation just floats like a rumor, repeated again and again.
* Bloomberg Business News (19 January 1996); also WIRED (16 January 1997)