Java 1.0 Turns 25(infoq.com)

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  Bill Venners: How did Scala come about? What is its history?

  Martin Odersky: Towards the end of my stay in Zurich, around 1988/89, 
  I became very fond of functional programming. So I stayed in research 
  and eventually became a university professor in Karlsruhe, Germany. 
  I initially worked on the more theoretical side of programming, on 
  things like call-by-need lambda calculus. That work was done together 
  with Phil Wadler, who at the time was at the University of Glasgow. 
  One day, Phil told me that a wired-in assistant in his group had heard 
  that there was a new language coming out, still in alpha stage, called 
  Java. This assistant told Phil: "Look at this Java thing. It's portable. 
  It has bytecode. It runs on the web. It has garbage collection. This 
  thing is going to bury you. What are you going to do about it?" Phil 
  said, well, maybe he's got a point there.

  The answer was that Phil Wadler and I decided take some of the ideas from 
  functional programming and move them into the Java space. That effort became 
  a language called Pizza, which had three features from functional programming: 
  generics, higher-order functions, and pattern matching. Pizza's initial 
  distribution was in 1996, a year after Java came out. It was moderately 
  successful in that it showed that one could implement functional language 
  features on the JVM platform.

  Then we got in contact with Gilad Bracha and David Stoutamire from the Sun 
  core developer team. They said, "We're really interested in the generics stuff 
  you've been doing; let's do a new project that does just that." And that became 
  GJ (Generic Java). So we developed GJ in 1997/98, and six years later it became 
  the generics in Java 5, with some additions that we didn't do at the time. In 
  particular, the wildcards in Java generics were developed later independently 
  by Gilad Bracha and people at Aarhus university.

  Although our generics extensions were put on hold for six years, Sun developed a 
  much keener interest in the compiler I had written for GJ. It proved to be more 
  stable and maintainable than their first Java compiler. So they decided to make 
  the GJ compiler the standard javac compiler from their 1.3 release on, which came 
  out in 2000.