- SpaceX held talks to acquire AI coding startup Cognition, as reported by Bloomberg.
- Cognition CEO Scott Wu denied the acquisition report, stating it was 'not true' and that 'Cognition is not for sale.'
- Elon Musk supported Wu's denial, clarifying that SpaceX only engaged with Cognition regarding Grok.
- Cognition was valued at $26 billion during a May funding round and is reportedly in discussions for new financing at a valuation of at least $40 billion.
- SpaceX's interest in Cognition was driven by both its technology and business development potential.
- AI growth is a central component of Musk's strategy for SpaceX, which has expanded into satellite communications and computing operations.
- Cognition is one of the largest independent AI software coding startups that has not yet been acquired by a major AI model maker.
SpaceX has reportedly engaged in discussions to acquire Cognition, an AI coding startup valued at $26 billion during a recent funding round, with expectations of reaching $40 billion in new financing. However, CEO Scott Wu refuted the acquisition claims, stating, "Cognition is not for sale."147
Following Wu's denial, Elon Musk confirmed on social media that SpaceX's interest was limited to discussions about its AI model, Grok. The talks, initially aimed at a takeover, have shifted towards potential collaboration, particularly regarding the use of SpaceX's computing infrastructure.35
SpaceX's AI venture, now known as SpaceXAI, has faced challenges in keeping pace with competitors like OpenAI and Anthropic. Musk's firm has implemented job cuts and organizational changes as it seeks to enhance its AI capabilities.
Cognition, founded in 2023, specializes in an AI agent named Devin, designed to automate programming tasks for engineers. The company’s growth trajectory is evident, as it aims to capitalize on the lucrative AI-assisted coding market, which has seen significant success with products like Claude Code from Anthropic.
As SpaceX continues to develop its AI tools, the company is under pressure to generate substantial revenue from AI, with Musk predicting that AI will constitute 99% of the company's value in the next four to five years.
“Bloomberg reports the acquisition discussions are no longer active, but the companies remain in talks about potential collaboration, including Cognition using SpaceX's computing infrastructure. Cognition was valued at $26 billion in a May funding round and is in early talks for new financing at a valuation of at least $40 billion.”
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