After closing a massive $60 billion acquisition of Cursor, SpaceX has made another aggressive move in the AI coding arena, approaching startup Cognition AI with a potential takeover offer—only to be turned away. This latest maneuver underscores Elon Musk's determined push to dominate the artificial intelligence sector.
According to sources familiar with the matter, SpaceX recently reached out to Cognition AI about a possible acquisition, but the startup did not engage in substantive negotiations. Discussions between the two parties are still ongoing, however, including the possibility of SpaceX providing computing power resources to Cognition. Cognition's chief executive, Scott Wu, responded publicly on social media, stating firmly: "We are not for sale, and we are not in talks."
Despite this setback, SpaceX's broader strategy in AI programming remains intact. Following its historic IPO this summer, the company has evolved from a rocket and satellite communications firm into a diversified technology conglomerate, with AI growth serving as a key strategic pillar.
SpaceX's Ambitions in AI Coding
SpaceX has been highly active in AI coding tools recently. The company just completed its $60 billion acquisition of Cursor, a major player in the "vibe coding" movement with explosive growth. The approach to Cognition marks SpaceX's second large-scale M&A attempt within just a few months.
Cognition also focuses on automating engineering tasks, making its positioning closely aligned with Cursor's. Insiders suggest that SpaceX's interest in Cognition stems not only from its technical prowess but also from its demonstrated commercial traction.
Musk's AI operations, currently run under the SpaceXAI brand, have lagged behind competitors in enterprise sales and have undergone a series of layoffs and restructuring. Acquiring companies with established customer bases is seen as a fast track to strengthening commercialization capabilities.
Cognition: Soaring Valuation, Firm Stance on Independence
Founded in 2023, Cognition's flagship product is Devin, an AI agent designed specifically for engineers to automate coding workflows. The company has already built partnerships with major corporations like Mercedes-Benz Group and GE Aerospace.
On valuation, Cognition was valued at $26 billion during a funding round in May of this year. It has since initiated preliminary discussions with investors for a new round, targeting a valuation of at least $40 billion.
Scott Wu has consistently taken a hard line against selling the company. In May, he publicly stated that a $1 billion funding round "allows us to remain independent and continue operating as a standalone company, which is crucial to us." His recent social media remarks echo that same position.
Although the acquisition attempt has stalled, contact between the two sides has not ended. Sources say SpaceX and Cognition are still discussing potential collaboration, including the possibility of SpaceX supplying computing resources to Cognition. If such an arrangement materializes, it would give SpaceX an alternative route into the AI coding ecosystem—by becoming an infrastructure provider and indirectly tying itself to fast-growing AI application-layer companies. Since its IPO this summer, SpaceX's computing division has become a critical component of its overall strategy, providing a practical foundation for such partnerships.