Microsoft has hired the entire team from AI collaboration platform Cove, leading to the startup's shutdown. Cove, which was backed by Sequoia Capital, will cease operations on April 1 with all customer data scheduled for deletion. This acquisition represents Microsoft's continued strategy of acquiring AI talent to bolster its collaboration tools.
Background
Tech giants frequently acquire AI startups primarily for their engineering talent rather than their products, a practice known as 'acqui-hiring'. Microsoft has been particularly active in strengthening its AI capabilities across its product portfolio.
- Source
- TechCrunch
- Published
- Mar 18, 2026 at 11:33 PM
- Score
- 6.0 / 10