Microsoft Acquires AI Startup Cove; Service to Shut Down

Microsoft has officially absorbed the team behind Cove, a Sequoia-backed startup recognized for its AI-driven collaborative whiteboard technology. As part of the transition, the Cove platform is set to discontinue its services, with a full shutdown scheduled for April 1.

A New Chapter at Microsoft AI

The startup, founded in late 2023 by former Google Maps engineers Stephen Chau, Andy Szybalski, and Mike Chu, confirmed the move in a blog post. The founders stated that joining Microsoft AI provides the scale necessary to pursue their vision of reimagining collaboration. While Microsoft has not disclosed specific integration plans, the company has previously demonstrated an interest in this space by embedding Copilot into its own Whiteboard product in 2023.

Operational Changes for Users

Cove has begun notifying its user base of the transition. Key takeaways for existing customers include:

• Service Termination: The Cove platform will go offline on April 1.
• Data Handling: All user data is slated for permanent deletion following the shutdown.
• Financials: Subscriptions for the month of March have been fully refunded.
• Migration: Users are encouraged to utilize the company’s data export process to save their content before the deadline.

Innovation in AI Canvas

Before the acquisition, Cove distinguished itself from competitors like Miro, TLDraw, and Kosmik by focusing on a more flexible, canvas-based approach to AI interaction. The platform allowed users to move beyond rigid chat interfaces, utilizing an infinite whiteboard where AI could generate, edit, and organize content through cards, lists, and tables. By incorporating support for PDFs, images, and built-in browsing, Cove provided a contextual workspace that the founders believed offered superior flexibility for complex tasks, such as trip planning.

The startup had successfully secured $6 million in seed funding during 2024, with backing from prominent investors including Sequoia Capital, Elad Gil, Homebrew, Adverb, Scott Belsky, and Lenny Rachitsky.