Microsoft Absorbs Sequoia-Backed AI Startup Cove as Tech Giants Race for Infinite Canvas Collaboration

Microsoft acquires the team behind Sequoia-backed AI platform Cove, integrating their infinite canvas collaboration technology into the Microsoft AI ecosystem.

By: AXL Media

Published: Mar 18, 2026, 11:50 AM EDT

Source: The information in this article was sourced from TechCrunch

Microsoft Consolidates AI Talent with Cove Acquisition

In a significant talent acquisition within the productivity software space, Microsoft has successfully brought on the entire team behind Cove, a collaborative AI startup previously backed by Sequoia Capital. The announcement was made public via a direct communication to Cove's user base, confirming that the startup will cease operations as an independent entity. This move follows a broader industry trend where established tech conglomerates are increasingly absorbing specialized AI startups to bolster their internal research and development capabilities, particularly in the realm of workplace collaboration tools.

The Pedigree of the Google Maps Veterans

Cove entered the market in late 2023, founded by a trio of former Google engineers, Stephen Chau, Andy Szybalski, and Mike Chu, who were instrumental in developing core Google Maps features such as Street View. Their transition into the AI space was met with significant investor enthusiasm, leading to a $6 million seed round in 2024. This funding round included high profile participation from Sequoia Capital, Elad Gil, and Scott Belsky, underscoring the perceived value of their vision to move AI interaction beyond the constraints of traditional chat interfaces.

Moving Beyond the Limits of Chat Interfaces

The technical philosophy behind Cove was rooted in the belief that standard AI chat boxes are fundamentally unsuited for complex, non-linear workflows. To solve this, the team developed an infinite whiteboard that utilized AI to generate and organize editable blocks for tasks ranging from project management to travel planning. By allowing users to interact with a canvas rather than a scrolling transcript, Cove provided a flexible environment where prompts could lead in multiple directions simultaneously, supported by a built-in browser and PDF integration for real-time context.