Microsoft Hires Team Behind Sequoia-Backed AI Startup Cove

Microsoft has hired the employees of Cove, a Silicon Valley startup focused on artificial intelligence collaboration tools. The deal brings specialized talent to Microsoft as it continues building its Copilot ecosystem and enterprise AI offerings. Cove will officially shut down its existing product on April 1, 2026, and current users must export their data before that date. Financial terms of the agreement were not disclosed.

What you need to know about Cove’s background and product vision

Cove CEO and co-founder Stephen Chau announced the transition on LinkedIn. He noted that the team is joining Microsoft to pursue a much larger vision for how people collaborate using AI models. Chau previously worked as head of product at Uber Eats. He launched Cove in 2023 alongside fellow Google Maps veterans Mike Chu and Andy Szybalski.

Before joining Microsoft, the Cove team focused on moving AI interactions beyond simple text windows. Their platform effectively turned standard chat threads with AI agents into shared visual workspaces.

It also provided tools for users to build custom AI applications tailored to their specific daily workflows. Investors saw real promise in the concept early on. Sequoia Capital led a $6 million seed funding round for the company in 2024.

Fitting into Microsoft’s broader strategy

This hiring push occurs amid structural changes within Microsoft’s artificial intelligence division. The company recently reorganized its Copilot group. This move unifies its consumer and commercial AI efforts to improve product clarity and boost overall user adoption.

Last week, Microsoft also introduced Copilot Cowork, a new assistant designed to run background tasks and generate documents across Microsoft 365 applications. Adding the entire Cove team gives Microsoft more engineering talent with direct experience in building shared AI environments.

Via TechCrunch