Cognition CEO denies report that SpaceX tried to acquire the startup

Elon Musk’s SpaceX attempted to get AI coding startup Cognition arsenic it works to drawback up to OpenAI, Anthropic, and Google successful the AI race, Bloomberg reported Wedesday, citing sources acquainted with the matter.

Cognition CEO Scott Wu disputed the study soon aft it published, penning connected X that the communicative was inaccurate and that Cognition “is not for sale,” adding that the 2 companies haven’t been successful talks.

The study comes a fewer days aft SpaceX’s $60 cardinal acquisition of Cursor, different AI coding startup, whose woody closed past week. 

SpaceX acquired Musk’s AI company, xAI, earlier this year. It past went nationalist successful a blockbuster IPO successful June, with its marketplace capitalization rising to astir $2.3 trillion astatine its peak.

SpaceX has sold investors connected its AI ambitions, which see yet gathering data centers successful space. But the xAI concern remains comparatively early-stage and has fallen down competitors.

It’s besides had to contend with its chatbot Grok’s penchant for controversy, including past year’s “MechaHitler” incidental and this year’s nonconsensual intersexual imagery scandals, arsenic it tries to triumph implicit endeavor customers.

Last week, Musk told SpaceX’s employees that successful astir “four oregon 5 years, AI volition beryllium 99% of the value” of the company, but achieving that feat volition necessitate SpaceX to propulsion successful overmuch much gross from AI.

AI-assisted coding has emerged arsenic 1 of the clearest ways to monetize the technology. Anthropic’s meteoric growth, fueled successful ample portion by Claude Code, is impervious of that. Bringing Cursor into the fold was portion of that equation, and the companies were already moving unneurotic earlier the acquisition closed. This month, Cursor and SpaceX jointly released Grok 4.6, a caller exemplary that  scores higher connected benchmarks for coding and analyzable multi-step agentic tasks. 

Adding Cognition and its coding cause Devin — on with an endeavor lawsuit basal that includes Mercedes-Benz, Citi, and Goldman Sachs — would person fixed SpaceX different mode to deepen its propulsion into AI coding and vie for endeavor customers. 

Bloomberg reports that the woody talks are nary longer active, but that the companies are inactive discussing moving unneurotic — perchance with Cognition utilizing SpaceX’s computing capacity, which the institution is selling to different AI players similar Anthropic until it needs that capableness for itself. Wu didn’t code this circumstantial assertion successful his denial.

Cognition remains 1 of the largest autarkic AI bundle coding startups that hasn’t yet been gobbled up by a large AI exemplary maker. The institution successful precocious May raised a $1 cardinal round astatine a $25 cardinal post-money valuation, and Bloomberg reports it’s present successful aboriginal talks for caller circular of backing astatine a $40 cardinal valuation.

Cognition made headlines past twelvemonth erstwhile it acquired the remaining assets of rival Windsurf aft Google DeepMind acqui-hired the startup’s CEO and apical probe successful a $2.4 cardinal woody for endowment and licensing rights.

After the merger, Cognition laid disconnected 30 employees and offered buyouts to the remaining 200 Windsurf employees. Those who decided to enactment faced strict operational expectations, similar an 80+ hr workweek and six days successful the office.

That benignant of wartime enactment ethic wouldn’t beryllium retired of spot successful a Musk company. Musk has said helium works up to 120 hours a week and often sleeps connected bureau oregon mill floors. 

SpaceX and Cognition did not respond to requests for comment.