Cognition CEO Refutes Allegations of Potential SpaceX Acquisition

A report from Bloomberg on Wednesday reveals that Elon Musk’s SpaceX is seeking to acquire the AI coding startup Cognition to enhance its competitive stance against companies like OpenAI, Anthropic, and Google in the artificial intelligence realm.

In response to this news, Cognition’s CEO, Scott Wu, took to X to deny these assertions, labeling them as misleading and stating that Cognition “is not for sale.” He also mentioned that there have been no discussions between Cognition and SpaceX.

This news follows SpaceX’s recent completion of a $60 billion acquisition of another AI coding startup, Cursor, just the week before.

Earlier in the year, SpaceX also acquired Musk’s AI venture, xAI, which drew significant attention after a successful IPO in June that reached a remarkable market valuation of nearly $2.3 trillion.

SpaceX’s aspirations in the AI sector are clear, particularly with plans to establish data centers in space. However, the xAI initiative is still in its nascent stages and has yet to catch up to its rivals.

The company has encountered challenges with its chatbot Grok, which has faced multiple controversies, including the “MechaHitler” incident last year and recent problems related to nonconsensual sexual imagery while trying to attract enterprise clients.

Recently, Musk informed SpaceX staff that “in four or five years, AI will constitute 99% of the company’s value,” but realizing this vision will require significant revenue growth driven by AI.

AI-driven coding is quickly becoming a vital channel for technology monetization, as evidenced by the rapid progress made by Anthropic, significantly bolstered by Claude Code. The acquisition of Cursor marks a strategic advancement in this direction, especially since the two companies had previously collaborated before finalizing their agreement. This month, Cursor and SpaceX unveiled Grok 4.6, a model proficient in coding assessments and complex multi-step tasks.

Integrating Cognition, which features its coding agent Devin and provides services to notable clients like Mercedes-Benz, Citi, and Goldman Sachs, would aid SpaceX in fortifying its position in AI coding and attracting a substantial client base.

Although Bloomberg’s reports indicate that talks about the acquisition have concluded, there remains potential for collaborative opportunities, such as Cognition possibly utilizing SpaceX’s computing resources, which are currently utilized by other AI companies like Anthropic until SpaceX’s demands increase. Wu did not specifically address this possibility in his comments.

Cognition stands out as one of the largest independent AI coding startups yet to be acquired by a prominent AI model developer. In late May, the company secured $1 billion in funding, achieving a valuation of $25 billion and is reportedly in early stages of discussions for another financing round, expected to value it at $40 billion.

Last year, Cognition gained attention by acquiring the remaining assets of its rival Windsurf in a $2.4 billion deal with Google DeepMind, which included the acqui-hire of Windsurf’s CEO and key researchers.

Post-merger, Cognition decided to lay off 30 employees and offered buyout packages to the remaining 200 Windsurf team members. Those who remained faced demanding work conditions, including an 80-hour work week and six days of in-office presence.

This rigorous work culture reflects Musk’s known reputation for long hours; he has shared experiences of working up to 120 hours weekly and frequently sleeping at the office or factory.

As of now, neither SpaceX nor Cognition has responded to requests for comments.