Microsoft acquires team behind Sequoia-backed AI collaboration startup Cove

The team behind Cove, a Sequoia-backed startup developing an AI-powered collaboration board, has joined Microsoft, according to an email sent to customers announcing that Cove’s service will shut down.

Cove was established in late 2023 by Stephen Chau, Andy Szybalski, and Mike Chu, all of whom previously contributed to Google Maps features such as Street View. In 2024, the company secured $6 million in seed funding from investors including Sequoia Capital, Elad Gil, Homebrew, Adverb, Scott Belsky, and Lenny Rachitsky.

The startup’s product is centred on an infinite whiteboard where artificial intelligence could generate various content blocks for tasks such as planning trips. The founders believed that traditional chat-based AI interfaces lacked flexibility and editability, while a canvas-style environment allowed users to explore multiple directions more easily when working with prompts.

Cove also enabled users to integrate additional context into their workflows by providing access to a built-in browser, PDFs, and images. Using this information, the AI could create new elements such as cards, tables, and lists within the workspace.

The company was competing in the collaborative tools space against platforms such as Miro, TLDraw, and Kosmik.

In its message to customers, Cove stated that its entire team would transition to Microsoft and that the product itself would be discontinued on April 1. All user data will be deleted as part of the shutdown process. The company also confirmed that it has refunded all March subscriptions and is providing users with a way to export their data.

“When we started Cove, we set out to reimagine how people collaborate with AI. As model capabilities have accelerated, our conviction in that mission has only grown stronger. We’re thrilled to continue this work at Microsoft AI, where we’ll have the opportunity to pursue an even bigger vision,” the company said in a statement published on its website.

Cove also noted that the concepts and ideas behind its product will continue within Microsoft. Notably, Microsoft had already integrated its Copilot AI into its Whiteboard collaboration tool in 2023.