Cognition CEO denies SpaceX acquisition report

Elon Musk’s SpaceX reportedly tried to buy AI coding startup Cognition, a move that would have furthered its aggressive push into the artificial intelligence sector. Bloomberg broke the story on Wednesday, citing individuals with knowledge of the situation, but Cognition’s chief executive quickly pushed back.

Scott Wu, who leads Cognition, took to X to dispute the narrative. He called the report inaccurate, stated flatly that the company “is not for sale,” and insisted that no negotiations have taken place between the two firms.

The alleged interest arrives on the heels of SpaceX’s massive $60 billion acquisition of Cursor, another player in the AI coding space, which closed just last week. That deal, combined with this new report, signals a clear pattern: SpaceX is aggressively consolidating AI development tools.

SpaceX’s journey into AI began in earnest earlier this year when it acquired Musk’s own venture, xAI. The combined entity then went public in a spectacular June IPO, at one point boasting a market valuation near $2.3 trillion.

Musk has pitched investors on a grand vision for AI, one that includes building data centers in orbit. However, the xAI division is still in its formative stages and currently trails behind established rivals like OpenAI, Anthropic, and Google.

Beyond the competitive gap, xAI has faced reputational hurdles. Its Grok chatbot has generated controversy, from last year’s “MechaHitler” episode to more recent scandals involving nonconsensual sexual imagery, complicating efforts to attract enterprise clients.

During an all-hands meeting last week, Musk reportedly told employees that within “four or five years, AI will be 99% of the value” of SpaceX. Reaching that milestone, though, demands a dramatic increase in AI-generated revenue.

AI-assisted coding has become one of the most promising revenue streams in the industry. Anthropic’s explosive growth, largely credited to its Claude Code product, demonstrates the potential. Integrating Cursor was a logical step, especially since the two companies had already collaborated before the acquisition finalized. Earlier this month, they jointly launched Grok 4.6, a model that outperforms competitors on benchmarks for coding and complex agentic tasks.

Adding Cognition would have given SpaceX another powerful tool: Devin, its AI coding agent, plus an enterprise roster featuring Mercedes-Benz, Citi, and Goldman Sachs. That combination would have positioned SpaceX to compete more directly for high-value corporate contracts.

According to Bloomberg, the acquisition discussions have stalled, though the companies remain open to collaboration. One possibility involves Cognition tapping into SpaceX’s computing capacity, which SpaceX currently sells to other AI firms like Anthropic until it requires the resources for its own operations. Wu’s denial did not address that specific point.

Cognition stands as one of the last major independent AI coding startups not yet absorbed by a tech giant. In late May, it raised $1 billion at a $25 billion post-money valuation. Bloomberg adds that the company is now in early talks for another round, potentially valuing it at $40 billion.

Last year, Cognition made headlines by acquiring the remnants of competitor Windsurf, following Google DeepMind’s $2.4 billion acqui-hire of Windsurf’s CEO and top researchers. That merger came with consequences: 30 employees were laid off, and the remaining 200 Windsurf staff were offered buyouts. Those who stayed faced demanding conditions, including 80-hour workweeks and six-day office schedules.

That intense, wartime-style culture would fit right in at a Musk enterprise. Musk himself has claimed to work up to 120 hours weekly, often crashing on office floors or in factories.

Neither SpaceX nor Cognition responded to requests for comment on the report.