HomeCognition CEO dismisses reports of SpaceX acquisition bid
SpaceX, led by Elon Musk, explored purchasing AI coding firm Cognition to close the gap with rivals OpenAI, Anthropic, and Google, according to a Wednesday Bloomberg report citing informed sources.
Cognition CEO Scott Wu quickly refuted the claim on X, stating the report was false and that Cognition “is not for sale,” while confirming no negotiations had taken place between the two firms.
This development follows SpaceX’s $60 billion acquisition of Cursor, another AI coding startup, which was finalized last week.
Earlier this year, SpaceX integrated Musk’s AI venture, xAI, into its operations. The company subsequently launched a major IPO in June, reaching a peak market capitalization of nearly $2.3 trillion.
SpaceX has pitched investors on ambitious AI goals, including plans to construct data centers in space. However, xAI remains in its early stages and lags behind its competitors.
Additionally, SpaceX’s chatbot Grok has faced controversy, including the “MechaHitler” incident last year and scandals involving nonconsensual sexual imagery this year, complicating efforts to attract enterprise clients.
Last week, Musk informed SpaceX staff that AI would account for 99% of the company’s value within four to five years, a goal requiring significantly higher AI-generated revenue.
AI-assisted coding has proven to be a clear monetization path, as demonstrated by Anthropic’s rapid growth driven by Claude Code. Acquiring Cursor was part of this strategy, with both companies collaborating before the deal closed. This month, they jointly launched Grok 4.6, a model that outperforms benchmarks in coding and complex multi-step agentic tasks.
Integrating Cognition and its Devin coding agent, along with enterprise clients like Mercedes-Benz, Citi, and Goldman Sachs, would have strengthened SpaceX’s position in AI coding and its competition for enterprise contracts.
Although Bloomberg states acquisition talks have ended, the companies are still exploring collaboration, potentially involving Cognition utilizing SpaceX’s computing resources, which are currently leased to other AI firms like Anthropic. Wu did not specifically address this aspect in his denial.
Cognition stands as one of the largest independent AI software coding startups not yet acquired by a major model provider. In late May, the company secured a $1 billion funding round at a $25 billion post-money valuation, with Bloomberg reporting ongoing discussions for a new round at a $40 billion valuation.
Cognition gained attention last year by acquiring the remaining assets of competitor Windsurf after Google DeepMind acquired the startup’s CEO and key researchers in a $2.4 billion deal focused on talent and licensing.
Following the merger, Cognition laid off 30 employees and offered buyouts to the remaining 200 Windsurf staff. Those who remained faced stringent operational demands, including an 80+ hour workweek and six days of office presence.
Such a rigorous work ethic aligns with Musk’s management style; he reportedly works up to 120 hours a week and often sleeps on office or factory floors.
Neither SpaceX nor Cognition responded to requests for comment.
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SpaceX, led by Elon Musk, explored purchasing AI coding firm Cognition to close the gap with rivals OpenAI, Anthropic, and Google, according to a Wednesday Bloomberg report citing informed sources.
Cognition CEO Scott Wu quickly refuted the claim on X, stating the report was false and that Cognition “is not for sale,” while confirming no negotiations had taken place between the two firms.
This development follows SpaceX’s $60 billion acquisition of Cursor, another AI coding startup, which was finalized last week.
Earlier this year, SpaceX integrated Musk’s AI venture, xAI, into its operations. The company subsequently launched a major IPO in June, reaching a peak market capitalization of nearly $2.3 trillion.
SpaceX has pitched investors on ambitious AI goals, including plans to construct data centers in space. However, xAI remains in its early stages and lags behind its competitors.
Additionally, SpaceX’s chatbot Grok has faced controversy, including the “MechaHitler” incident last year and scandals involving nonconsensual sexual imagery this year, complicating efforts to attract enterprise clients.
Last week, Musk informed SpaceX staff that AI would account for 99% of the company’s value within four to five years, a goal requiring significantly higher AI-generated revenue.
AI-assisted coding has proven to be a clear monetization path, as demonstrated by Anthropic’s rapid growth driven by Claude Code. Acquiring Cursor was part of this strategy, with both companies collaborating before the deal closed. This month, they jointly launched Grok 4.6, a model that outperforms benchmarks in coding and complex multi-step agentic tasks.
Integrating Cognition and its Devin coding agent, along with enterprise clients like Mercedes-Benz, Citi, and Goldman Sachs, would have strengthened SpaceX’s position in AI coding and its competition for enterprise contracts.
Although Bloomberg states acquisition talks have ended, the companies are still exploring collaboration, potentially involving Cognition utilizing SpaceX’s computing resources, which are currently leased to other AI firms like Anthropic. Wu did not specifically address this aspect in his denial.
Cognition stands as one of the largest independent AI software coding startups not yet acquired by a major model provider. In late May, the company secured a $1 billion funding round at a $25 billion post-money valuation, with Bloomberg reporting ongoing discussions for a new round at a $40 billion valuation.
Cognition gained attention last year by acquiring the remaining assets of competitor Windsurf after Google DeepMind acquired the startup’s CEO and key researchers in a $2.4 billion deal focused on talent and licensing.
Following the merger, Cognition laid off 30 employees and offered buyouts to the remaining 200 Windsurf staff. Those who remained faced stringent operational demands, including an 80+ hour workweek and six days of office presence.
Such a rigorous work ethic aligns with Musk’s management style; he reportedly works up to 120 hours a week and often sleeps on office or factory floors.
Neither SpaceX nor Cognition responded to requests for comment.
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