Cognition CEO Refutes Allegations of SpaceX’s Potential Acquisition of the Company

As reported by Bloomberg on Wednesday, Elon Musk’s SpaceX is reportedly seeking to acquire the AI coding startup Cognition to enhance its competitiveness against firms like OpenAI, Anthropic, and Google in the field of artificial intelligence.

In response to the report, Cognition’s CEO Scott Wu took to X to deny the allegations, labeling them as misleading and emphasizing that Cognition “is not for sale.” He also mentioned that there have been no negotiations between his company and SpaceX.

This news follows SpaceX’s recent $60 billion acquisition of another AI coding startup, Cursor, completed just last week.

Earlier this year, SpaceX also took over Musk’s AI venture, xAI, which gained prominence after a successful IPO in June that reached a peak market valuation of nearly $2.3 trillion.

SpaceX’s aspirations in the AI sector are clear, especially with plans to establish data centers in space. However, the xAI project is still in its infancy and is trailing behind its competitors.

The company has encountered difficulties with its chatbot Grok, which has faced various controversies, including the “MechaHitler” incident last year and issues this year related to nonconsensual sexual imagery, all while striving to attract enterprise clients.

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

AI-driven coding is becoming an essential path for technology monetization, as demonstrated by Anthropic’s swift growth, bolstered significantly by Claude Code. The acquisition of Cursor marks a strategic move in this direction, particularly since the two companies had previously collaborated before finalizing their agreement. Earlier this month, Cursor and SpaceX unveiled Grok 4.6, a model proficient in coding assessments and complex multi-step tasks.

Incorporating Cognition, which features its coding agent Devin and serves reputable clients such as Mercedes-Benz, Citi, and Goldman Sachs, would allow SpaceX to enhance its standing in AI coding and attract substantial clientele.

Although Bloomberg’s reports indicate discussions surrounding the acquisition have concluded, there remains a possibility for collaborative efforts, such as Cognition potentially utilizing SpaceX’s computing resources, which are currently assigned to other AI companies like Anthropic until SpaceX’s own demands increase. Wu did not specifically address this idea in his remarks.

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

Cognition drew attention last year by acquiring the remaining assets of competitor 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 opted to lay off 30 employees and provided buyout packages to the remaining 200 Windsurf team members. Those who chose to stay faced intense operational demands, including an 80-hour workweek and six days of in-office work.

This high-pressure work culture reflects Musk’s well-known reputation for extended hours; he has mentioned working up to 120 hours weekly and frequently sleeping at work or in the factory.

Neither SpaceX nor Cognition has yet responded to requests for comments.