Microsoft Acquires AI Collaboration Startup Cove, Product to Shut Down in April
Microsoft has expanded its artificial intelligence capabilities with the acquisition of Cove, a startup focused on AI-powered collaboration tools. The entire Cove team has accepted positions at Microsoft, with the Cove product slated to be discontinued on April 1, 2026.
Cove’s AI-Driven Collaboration Platform
Cove developed a visual workspace designed to enhance teamwork and creativity through the integration of artificial intelligence. The platform allowed users to brainstorm, plan, and collaborate in a shared, interactive environment. Founded in late 2023 by Stephen Chau, Andy Szybalski, and Mike Chu – all former Google Maps employees – Cove distinguished itself with an infinite whiteboard interface where AI could generate various blocks for tasks like trip planning 1. The startup raised $6 million in seed funding from Sequoia Capital and other investors in 2024 1.
Transition to Microsoft AI
According to a LinkedIn post by Cove co-founder and CEO Stephen Chau, the team is “thrilled to continue this operate at Microsoft,” where they will contribute to the development of AI-powered collaboration tools within the Microsoft AI division 2. Chau emphasized the team’s commitment to reimagining collaboration with AI, stating that their conviction in this mission has only grown stronger 2.
Product Shutdown and Data Export
Cove has ceased accepting new users and will be fully shut down on April 1, 2026. Existing users are being provided with a data export feature to download their work before the platform is decommissioned 2. All user data will be permanently deleted after this date 1. The company has also refunded all March subscriptions 1.
Microsoft’s Expanding AI Portfolio
This acquisition underscores Microsoft’s ongoing investment in artificial intelligence and its commitment to integrating AI into its suite of productivity and collaboration tools. Microsoft previously added Copilot to its Whiteboard application in 2023 1, signaling a broader strategy to enhance collaborative workflows with AI capabilities. The “ideas behind” Cove are expected to be integrated into Microsoft’s existing products 1.
Key Takeaways
- Microsoft has acquired the team behind AI collaboration startup Cove.
- The Cove product will be shut down on April 1, 2026.
- Cove users can export their data before the shutdown.
- The acquisition strengthens Microsoft’s AI capabilities in the collaboration space.
Keep reading