Summary
It’s no secret Walter White fromBreaking Badis an extremely intelligent person – scientist, at that. But no one in their right mind woulddecide to start cooking crystal methjust for the thrill of it. A lot went into the life-altering decision made by the man who would eventually become Heisenberg.
The most prominent reason for starting to supply such a serious drug was because Walter was diagnosed with Stage III lung cancer. But paying for cancer treatments is not cheap, especially for a household with one working parent having to provide for what was soon to become a family of four on a high school teaching salary.

But long before the events ofBreaking Bad, Walter had an opportunity to make a lot more money – money that would be earned from progressing the scientific community immensely – in a company called Gray Matter Technologies. Alas, he made a heart-driven decision that led him to not only be cut out of the company’s earnings, but that would eventually lead to his heavy resentment of two people he once called close friends.
What Is Gray Matter Technologies?
Gray Matter Technologies is a company dedicated to scientific research of various subjects. It was founded by Walter and his classmate and close friend from the California Institute of Technology, Elliot Schwartz. The two grew close while attending school and even collaborated on school projects, including their senior thesis. They earned a Nobel Prize before even graduating, and decided to start their own scientific research company upon graduation.
Vince Gilligan
Cast
Bryan Cranston, Aaron Paul, Anna Gunn, Dean Norris, Bob Odenkirk, RJ Mitte, Giancarlo Esposito
Where to Watch
Netflix
Gray Matter’s name comes from the combination of Walt and Elliot’s last names (Schwartz meaning “black” in German mixed with White makes Gray). While it seemed to be a promising endeavor, the two soon realized it was going to take a lot more work and money for them to get a good enough jumpstart to actually start seeing results in the company’s success.
Walt ended up leaving the Gray Matter, selling his share in the company for a mere $5,000. Years later, asWalt changed his career pathto teaching, Gray Matter blew up and was worth upwards of $2 billion. Walt ultimately regretted leaving – both because of the reasoning and after seeing how successful they became. Walt kept in touch with his former colleagues, but always held a certain degree of resentment towards them, placing blame upon them for his lack of financial success instead of recognizing he was the one who decided to leave.

Why Does Walter Leave Gray Matter?
Walter and Elliot ran Gray Matter Technologies, but they didn’t work there alone. Early on, Walter hired a lab assistant named Gretchen, who matched his and Elliot’s intelligence and played a vital role in conducting research solving equations that would further their success. Soon, Walter and Gretchen developed a love affair and became very serious, at one point becoming engaged to one another.
Gretchen, unlike Walt, came from a very wealthy household. This intimidated Walt, and he felt lesser than her because of it. The feeling was too much, and he ultimately decided to end their relationship. But seeing the inevitable awkward tension that would be present at work because of this, he thought the only resolution was to leave the company entirely. And it’s not like he was losing out on a ton of money. Selling his share for $5,000 was actually a fairly hefty payout at that time in Gray Matter’s history.

Elliot and Gretchen Schwartz
Last Appearance
“Felina” (Season 5, Episode 16)
After Walt’s departure, Elliot and Gretchen started seeing each other, and eventually the two got married and became co-owners of Gray Matter. Walt reconnected with the two after being invited to a birthday party. At the party, Elliot offered Walt a job as an employee of Gray Matter, and Walt became infuriated that they would offer him anything less than a high-up position. He also saw it as a gesture out of pity for his cancer diagnosis. The job proposal led to them cutting ties with each other, and Walt wouldn’t see either of them until hisidentity as Heisenbergwas revealed to the world.
What Happens to Gray Matter Technologies?
After the world finds out that New Mexico high school chemistry teacher Walter White is the infamous Heisenberg, Elliot and Gretchen publicly declare they have no association with him regarding Gray Matter, after the information surfaced that he was once a part of it. In the series finale – titled"Felina"(season 5, episode 16) – Walt catches a clip of a TV interview with the two, and Elliot says:
I have to believe that the investing public understands that we’re talking about a person who was there early on, but who had virtually nothing to do with the creation of the company, and still less to do with growing it into what it is today.

Gretchen adds to the conversation, saying the only contribution Walt had to the company was the name Gray Matter. She continues, stating that Walter White, the man she once knew, is long gone and was taken over by Heisenberg. This enrages Walt, who was in hiding in New Hampshire for about a year. And he decides to take a drastic step.
Walt breaks into the Schwartzs' home and waits for them to return home from a night out. Rightfully frightened by his being there, Walt proposes a plan for them to follow with his illegal earnings of $9,720,000:
On my son’s eighteenth birthday… you will give him this money in the form of an irrevocable trust. You will tell him that it is his to do with as he sees fit, but with the hope that he uses it for his college education. And for the betterment of his family.
Walt explainsthat he can’t give it to them himself because the federal government would confiscate it. So, he sees the only way to get them this money would be by having Elliot and Gretchen donate the money to a trust fund via Gray Matter, and use that fund for Walt’s son, Walter Jr.
To ensure they carry through with his demands – seeing as though Walt expects he will die in the next few days – he has them believe he hired two hitmen to watch their every move. In reality, he had Skinny Pete and Badger shine red lasers into the windows, making them think they were snipers. Walt leaves and never sees them again, but viewers ofBreaking Badcan assume they followed Walt’s instructions, and even lived the rest of their lives, while maintaining ownership of Gray Matter Technologies, thinking they were under constant surveillance.
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