SpaceX Attempted to Acquire Cognition AI Startup, CEO Denies Reports

Scott Wu, CEO of AI startup Cognition, denied Bloomberg reports that SpaceX attempted to acquire the company. In a post on X*, Wu called the information inaccurate, emphasizing that Cognition is not for sale and no negotiations with SpaceX took place. The news emerged shortly after SpaceX finalized its acquisition of another AI startup, Cursor, which specializes in developer tools.

SpaceX is aggressively expanding its presence in the artificial intelligence sector, aiming to catch up with market leaders like OpenAI, Anthropic, and Google. Earlier this year, the company integrated xAI, Elon Musk’s AI venture, and conducted an IPO, reaching a valuation of approximately $2.3 trillion. However, xAI remains in its early stages of development, and its Grok chatbot has faced reputational issues due to controversial content, making it difficult to attract corporate clients.

AI coding has become one of the key areas for monetizing AI technologies. Anthropic’s success with its Claude Code model exemplifies this trend. SpaceX’s acquisition of Cursor strengthened its position in the segment, and a potential deal with Cognition—with its Devin agent and clients like Mercedes-Benz and Goldman Sachs—could have been the next step. However, negotiations have stalled, though both parties are exploring potential collaborations, including leasing SpaceX’s computing power.

Cognition remains one of the largest independent startups in AI coding. In May, the company raised $1 billion at a $25 billion valuation and is in talks for a new funding round with a potential $40 billion valuation. Previously, Cognition acquired assets from competitor Windsurf after Google DeepMind poached its key talent for $2.4 billion.