Cove, a Sequoia-backed startup developing an AI-powered collaboration board, is shutting down as its entire team joins Microsoft. The company informed customers that its service will cease operations on April 1, with all user data scheduled for deletion.
Founded in 2023 by former Google Maps contributors, Cove raised $6 million in seed funding from investors including Sequoia Capital and Elad Gil. The startup built an infinite canvas tool designed to improve AI collaboration beyond traditional chat interfaces. Its platform enabled users to generate structured content such as tables and lists while integrating external sources like PDFs, images, and web data.
Cove positioned its product as a flexible alternative to chat-based AI tools, competing with platforms such as Miro and TLDraw. The founders emphasized that canvas-based interfaces allow users to iterate more effectively across multiple ideas.
The company stated that its core concepts will continue within Microsoft. The move aligns with Microsoft’s broader push into AI productivity tools, including the integration of Copilot into its Whiteboard product.
The acquisition reflects ongoing consolidation in the AI collaboration software market.
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