Microsoft Acquires AI Startup Cove

The team behind Cove, an AI-powered collaboration board startup, has been acquired by Microsoft. Cove's service will cease operations on April 1, 2026, with all user data slated for deletion. The founders, who previously worked on Google Maps features, established Cove in late 2023.

In 2024, the startup successfully secured $6 million in seed funding from prominent investors. Cove's innovative tool offered an infinite whiteboard with AI capabilities for task generation, aiming to provide more flexibility than traditional chat interfaces.

The entire Cove team is reportedly moving to Microsoft AI to pursue a broader vision for collaboration with artificial intelligence. This acquisition suggests Microsoft's interest in integrating Cove's technology into its own AI-driven products, following its 2023 addition of Copilot to Whiteboard.