Microsoft hires the team of Sequoia-backed AI collaboration platform, Cove

Microsoft has acquired the team behind Cove, an AI collaboration platform backed by Sequoia, which is shutting down its service. Founded in 2023, Cove offered an AI-powered infinite whiteboard and generated various collaborative tools. The Cove team aims to integrate their vision within Microsoft's ecosystem, enhancing its existing collaboration tools.

Key Points

• Cove was founded in late 2023 by former Google Maps developers.
• The startup raised $6 million in seed funding from Sequoia Capital and others in 2024.
• Cove's main product was an AI-powered infinite whiteboard for collaboration.
• It offered features such as built-in browser access, PDFs, and images for context.
• Cove will shut down on April 1, and all user data will be deleted.
• All subscriptions for March have been refunded and a data export process was offered.
• Microsoft plans to integrate Cove's technologies into its collaboration products.

Relevance

• The acquisition reflects the growing trend in 2025 for AI integration in collaborative work tools.
• Microsoft's enhanced collaboration platforms like Whiteboard with Copilot show a push towards AI-driven productivity solutions.
• The shift in collaboration tools emphasizes the importance of user-centered design in technology, aligning with 2025 IT trends.

The acquisition of Cove by Microsoft marks a significant step in enhancing AI collaboration tools, showcasing the increasing integration of AI in workplace productivity solutions.