Microsoft has brought on the entire team of Cove, a Sequoia-backed AI collaboration startup, in a strategic talent acquisition aimed at strengthening its AI capabilities. As part of the transition, Cove will shut down its product on April 1, with all user data set to be deleted after providing export options to customers.
Founded in 2023 by former Google Maps engineers Stephen Chau, Andy Szybalski, and Mike Chu, Cove had developed an AI-powered collaborative workspace built around an “infinite canvas” concept. Unlike traditional chat-based AI tools, its platform allowed users to visually organize ideas, generate AI-driven content blocks such as tables and lists, and integrate context from browsers, PDFs, and images.
The startup had raised around $6 million in seed funding from investors including Sequoia Capital and was positioning itself in the competitive visual collaboration space alongside tools like Miro and Tldraw. Its core proposition was to move beyond linear AI chats toward a more flexible, editable, and interactive workspace for brainstorming and planning.
Announcing the move, the company stated, “When we started Cove, we set out to reimagine how people collaborate with AI… We’re thrilled to continue this work at Microsoft AI, where we’ll have the opportunity to pursue an even bigger vision.”
The team will now join Microsoft’s AI division, where their expertise is expected to contribute to enhancing products like Copilot and Microsoft Whiteboard. While the exact integration plans have not been disclosed, the acquisition reflects Microsoft’s ongoing push to improve AI-driven productivity tools and create more intuitive collaboration experiences.
This move also highlights a broader industry trend, where large tech companies are increasingly acquiring specialized AI talent rather than standalone products. As competition intensifies in the AI productivity space, such “acqui-hire” strategies are becoming key to accelerating innovation and maintaining a competitive edge.
