Cognition CEO denies Bloomberg report that SpaceX tried to acquire the AI startup

SpaceX attempted to acquire AI coding startup Cognition as part of its broader push to compete with OpenAI, Anthropic, and Google in the AI race, Bloomberg reported Wednesday, citing sources familiar with the matter. However, Cognition CEO Scott Wu publicly disputed the report shortly after it published, writing on X that the story was inaccurate and that Cognition “is not for sale,” adding that the two companies haven’t been in talks.

Context and Background

The report comes just days after SpaceX closed its $60 billion acquisition of Cursor, another AI coding startup, and follows SpaceX’s earlier acquisition of Musk’s AI company, xAI, earlier this year. SpaceX went public in a blockbuster IPO in June, with its market capitalization rising to nearly $2.3 trillion at its peak. The company has sold investors on its AI ambitions, which include eventually building data centers in space, but the xAI business remains relatively early-stage and has fallen behind competitors. It has also had to contend with its chatbot Grok’s penchant for controversy, including last year’s “MechaHitler” incident and this year’s nonconsensual sexual imagery scandals, as it tries to win over enterprise customers.

Why AI Coding Matters

AI-assisted coding has emerged as one of the clearest ways to monetize AI technology. Anthropic’s meteoric growth, fueled in large part by Claude Code, is proof of that. Bringing Cursor into the fold was part of that equation, and the companies were already working together before the acquisition closed. This month, Cursor and SpaceX jointly released Grok 4.6, a new model that scores higher on benchmarks for coding and complex multi-step agentic tasks. Adding Cognition and its coding agent Devin — along with an enterprise customer base that includes Mercedes-Benz, Citi, and Goldman Sachs — would have given SpaceX another way to deepen its push into AI coding and compete for enterprise customers.

What the Denial Means

Bloomberg reports that the deal talks are no longer active, but that the companies are still discussing working together — potentially with Cognition using SpaceX’s computing capacity, which the company is selling to other AI players like Anthropic until it needs that capacity for itself. Wu didn’t address this specific claim in his denial. Cognition remains one of the largest independent AI software coding startups that hasn’t yet been gobbled up by a major AI model maker. The company in late May raised a $1 billion round at a $25 billion post-money valuation, and Bloomberg reports it’s now in early talks for a new round of funding at a $40 billion valuation.

Recent History and Culture

Cognition made headlines last year when it acquired the remaining assets of competitor Windsurf after Google DeepMind acqui-hired the startup’s CEO and top research in a $2.4 billion deal for talent and licensing rights. After the merger, Cognition laid off 30 employees and offered buyouts to the remaining 200 Windsurf employees. Those who decided to stay faced strict operational expectations, like an 80+ hour workweek and six days in the office. That sort of wartime work ethic wouldn’t be out of place in a Musk company. Musk has said he works up to 120 hours a week and often sleeps on office or factory floors.

Conclusion

While SpaceX’s reported interest in Cognition highlights the strategic importance of AI coding tools in the enterprise market, the denial from Cognition’s CEO raises questions about the accuracy of the report. As of now, no deal is confirmed, and the two companies are said to be exploring a partnership rather than an acquisition. For readers, this story underscores the intensifying competition among tech giants to secure AI talent and products, with significant implications for the future of software development and enterprise AI adoption.

FAQs

Q1: Did SpaceX acquire Cognition?
No, as of the latest reports, SpaceX did not acquire Cognition. Bloomberg reported that talks were attempted but are no longer active, and Cognition’s CEO has publicly denied any acquisition discussions.

Q2: What is Cognition’s main product?
Cognition is known for its AI coding agent Devin, which is designed to assist developers with coding tasks and complex agentic workflows. The company serves enterprise clients like Mercedes-Benz, Citi, and Goldman Sachs.

Q3: Why is AI coding important to SpaceX?
AI coding is seen as a clear monetization path for AI technology. SpaceX has been expanding its AI capabilities through acquisitions and partnerships, aiming to compete with major players like OpenAI, Anthropic, and Google in the enterprise AI market.