Cognition CEO Refutes Speculations About Potential SpaceX Acquisition

A Bloomberg report on Wednesday revealed that Elon Musk’s SpaceX is interested in acquiring the AI coding startup Cognition to enhance its competitive stance against rivals such as OpenAI, Anthropic, and Google in the artificial intelligence market.

In response to this news, Cognition’s CEO, Scott Wu, took to X to deny these assertions, calling them misleading and stressing that Cognition “is not for sale.” He added that no discussions have taken place between Cognition and SpaceX.

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

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

SpaceX’s ambitions in the AI sector are clear, especially with plans to develop data centers in space. However, the xAI initiative is still in its infancy and has yet to reach the advancements of its competitors.

The company has encountered issues with its chatbot Grok, which has been involved in several controversies, including the “MechaHitler” incident last year and recent troubles regarding the use of nonconsensual sexual imagery while courting enterprise clients.

Recently, Musk conveyed to SpaceX employees that “in four or five years, AI will account for 99% of the company’s value,” but turning this vision into reality will require substantial revenue growth driven by AI.

AI-based coding is rapidly becoming a vital avenue for technology monetization, highlighted by the swift advancements made by Anthropic, significantly aided by Claude Code. The acquisition of Cursor is a strategic move in this direction, particularly since the two firms had previously collaborated before finalizing their merger. Earlier this month, Cursor and SpaceX unveiled Grok 4.6, a model proficient at handling coding assessments and intricate multi-step tasks.

Integrating Cognition, which features its coding agent Devin and works with high-profile clients like Mercedes-Benz, Citi, and Goldman Sachs, would strengthen SpaceX’s position in AI coding and help it gain a robust client portfolio.

While Bloomberg’s reports indicate that discussions for acquisition have concluded, there remains potential for collaboration, such as Cognition possibly utilizing SpaceX’s computing resources, which are currently employed by other AI companies like Anthropic until SpaceX’s requirements intensify. Wu did not specifically address this possibility in his statements.

Cognition is recognized as 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, reaching a valuation of $25 billion and is reportedly in early negotiations for another funding round, expected to elevate its value to $40 billion.

Last year, Cognition gained attention by acquiring the entire asset portfolio of its competitor Windsurf in a $2.4 billion agreement with Google DeepMind, which included the acquisition of Windsurf’s CEO and key researchers.

Following the merger, Cognition opted to lay off 30 employees and offered buyout packages to the remaining 200 Windsurf team members. Those who remained faced challenging work conditions, including an 80-hour workweek and six days of required in-office attendance.

This demanding work environment reflects Musk’s well-known reputation for long hours; he has shared experiences of working up to 120 hours a week and often sleeping at the office or factory.

As of now, neither SpaceX nor Cognition has provided comments in response to inquiries.