Microsoft hires employees from Cove, a small Sequoia-backed AI startup that helps teams collaborate

Microsoft hires employees from Cove, a small Sequoia-backed AI startup that helps teams collaborate

By Taylor Soper
Publication Date: 2026-03-17 20:18:00

The Cove team. (Photo via Cove)

Cove, a Silicon Valley startup that helps workers collaborate while using AI agents, announced Tuesday that its team is joining Microsoft.

Terms of the deal were not disclosed. Cove will shut down its product on April 1.

“When we started Cove, we set out to reimagine how people collaborate with AI,” Cove co-founder and CEO Stephen Chau wrote on LinkedIn. “As model capabilities have accelerated, our conviction in that mission has only grown stronger. We’re thrilled to continue this work at Microsoft, where we’ll have the opportunity to pursue an even bigger vision.”

Cove raised a $6 million seed round in 2024 led by Sequoia Capital. The company built software to turn single-threaded chats with conversational agents into a visual workspace. It later allowed