Cognition CEO denies report that SpaceX tried to acquire the startup
The landscape of the artificial intelligence sector remains volatile as rumors of high-stakes consolidation swirl. Following a report from Bloomberg on Wednesday, speculation mounted that Elon Musk’s SpaceX had entered into negotiations to purchase the AI coding startup Cognition. However, the narrative was swiftly challenged by the startup’s leadership.
A Firm Denial from Leadership
Shortly after the report surfaced, Cognition CEO Scott Wu took to X (formerly Twitter) to address the claims directly. Wu characterized the story as inaccurate, stating unequivocally that the company is not currently for sale and that no formal discussions regarding an acquisition have taken place between the two organizations.
"The story is inaccurate. Cognition is not for sale, and we have not been in talks with SpaceX." — Scott Wu, CEO of Cognition
SpaceX’s Aggressive AI Pivot
The speculation regarding Cognition arrives on the heels of a massive strategic shift at SpaceX. Last week, the company finalized its $60 billion acquisition of Cursor, another prominent player in the AI coding space. This move is part of a broader, aggressive effort by Musk to position his empire as a dominant force in the enterprise AI market, aiming to bridge the gap between his ventures and established giants like OpenAI, Anthropic, and Google.
SpaceX’s integration of AI has been rapid. Earlier this year, the company brought xAI into its fold. Following a blockbuster IPO in June, the company saw its market capitalization soar to a peak of approximately $2.3 trillion. Musk has been vocal about his long-term vision, which includes the ambitious goal of constructing data centers in space.
However, the path to dominance is not without hurdles. The xAI business is still in its nascent stages and faces stiff competition. Furthermore, the company’s chatbot, Grok, has been mired in controversy—ranging from the "MechaHitler" incident last year to recent scandals involving nonconsensual sexual imagery—complicating its appeal to enterprise-level clients.
The Monetization of AI Coding
Musk recently signaled to SpaceX employees that AI could account for 99% of the company’s value within the next four to five years. To reach that milestone, SpaceX must generate significant revenue from its AI initiatives. AI-assisted coding has emerged as a primary vehicle for this monetization, with the rapid growth of Anthropic’s Claude Code serving as a blueprint for success.
The acquisition of Cursor was a calculated step in this direction. The two entities had been collaborating prior to the deal's closure, and this month, they jointly launched Grok 4.6, a model that has demonstrated superior performance in complex, agentic coding tasks.
What Could Have Been
Had a deal with Cognition materialized, it would have provided SpaceX with a significant advantage. Cognition’s flagship product, Devin, is highly regarded, and the startup boasts an impressive roster of enterprise clients, including Goldman Sachs, Citi, and Mercedes-Benz.
While Bloomberg noted that any potential acquisition talks are no longer active, the report suggested that the two companies might still explore a partnership—potentially involving Cognition leveraging SpaceX’s massive computing infrastructure.
A High-Stakes Market
Cognition remains one of the most valuable independent entities in the AI coding space. After raising $1 billion at a $25 billion valuation in May, reports suggest the company is already eyeing a new funding round that could push its valuation to $40 billion.
The startup previously made waves by acquiring the remaining assets of Windsurf following a $2.4 billion talent-and-licensing deal between Windsurf’s leadership and Google DeepMind. The subsequent integration was marked by a rigorous, "wartime" work culture—a philosophy that aligns closely with Musk’s own well-documented, 120-hour work weeks.
As of now, both SpaceX and Cognition have declined to provide further comment on the matter.