Microsoft hires AI team from Sequoia-backed startup Cove

▼ Summary
– The AI collaboration startup Cove is shutting down as its entire team joins Microsoft, with the service ending and all user data being deleted on April 1.
– Cove was founded in 2023 by ex-Google Maps engineers and raised $6 million in seed funding in 2024 from investors including Sequoia Capital.
– Its product was an infinite AI-powered whiteboard designed to offer more flexible, editable collaboration than a standard AI chat interface.
– The tool allowed users to integrate web browsers, PDFs, and images to provide context, enabling the AI to generate cards, tables, and lists.
– The founders stated their mission to reimagine AI collaboration will continue at Microsoft AI, and Microsoft had previously added its Copilot AI to its own Whiteboard product.
Microsoft has acquired the entire team from the AI collaboration startup Cove, a move that signals a significant expansion of its artificial intelligence and productivity tools. The transition was announced directly to Cove’s user base, who were informed that the service will cease operations on April 1st, with all customer data scheduled for deletion. This strategic talent acquisition brings a group of seasoned product builders, including founders with deep experience from major projects like Google Maps and Street View, directly into the Microsoft AI division.
Cove, which launched in late 2023, developed an innovative infinite canvas where artificial intelligence could dynamically generate elements such as cards, tables, and lists to assist with complex tasks like planning a trip. The founders believed that moving beyond a standard chat interface to a flexible visual workspace allowed for more creative and editable interactions with AI prompts. Their platform integrated a built-in browser and supported PDFs and images, providing rich context for the AI to work from. The startup had secured $6 million in a seed funding round from prominent investors including Sequoia Capital and Elad Gil, positioning it as a competitor to established visual collaboration tools like Miro and TLDraw.
In a blog post, Cove expressed enthusiasm for continuing its mission within the larger framework of Microsoft. “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 stated. They assured users that the core ideas behind Cove will live on as the team integrates into Microsoft’s ecosystem. The company has processed refunds for all March subscriptions and is providing users with a way to export their data before the shutdown.
This acquisition aligns closely with Microsoft’s ongoing investments in AI-enhanced productivity. The company already infused its Microsoft Whiteboard application with Copilot AI features in 2023. Bringing the Cove team on board suggests a focused effort to further innovate and potentially redefine collaborative workspaces by merging advanced AI with intuitive visual canvases. While specific integration plans for Cove’s technology within Microsoft’s suite of products have not been publicly detailed, the move underscores the intense competition for top AI talent and the strategic importance of next-generation collaboration tools.
(Source: TechCrunch)