SpaceX Attempted to Acquire AI Coding Startup Cognition

SpaceX approached artificial intelligence coding startup Cognition AI Inc. about a potential acquisition, though talks are not currently active, according to people familiar with the matter. Cognition, valued at $26 billion in a May funding round, has been in early talks for new financing at a valuation of at least $40 billion. The offer highlights Elon Musk's willingness to spend heavily to compete in AI, following SpaceX's recent $60 billion acquisition of Cursor.

Bloomberg -- SpaceX approached artificial intelligence coding startup Cognition AI Inc. about a potential acquisition, according to people familiar with the matter, in what would have been its second large takeover in recent months to gain ground in the AI race. Most Read from Bloomberg - Bessent Deploys Debt Buybacks in Sign of Concern Over Yield Rise https://www.bloomberg.com/news/articles/2026-08-19/long-dated-treasuries-rally-as-treasury-boosts-bond-buybacks?utm campaign=bn&utm medium=distro&utm source=yahooUS - Natalie Harp, Trump's Gatekeeper, Is at Center of Senator Jon Ossoff Clash https://www.bloomberg.com/news/articles/2026-08-18/little-known-trump-aide-is-at-center-of-clash-with-dem-senator?utm campaign=bn&utm medium=distro&utm source=yahooUS - PlayStation Reboots 'Horizon Hunters Gathering' as Live-Service Strategy Struggles https://www.bloomberg.com/news/articles/2026-08-19/playstation-reboots-horizon-hunters-gathering-as-live-service-strategy-struggles?utm campaign=bn&utm medium=distro&utm source=yahooUS - Stocks Climb as Treasury Steps In to Support Bonds: Markets Wrap https://www.bloomberg.com/news/articles/2026-08-18/stock-market-today-dow-s-p-live-updates?utm campaign=bn&utm medium=distro&utm source=yahooUS The deal talks are not currently active, but the companies continue to hold discussions about working together, including potentially arranging for Cognition to use SpaceX's computing capacity, said the people, who spoke on condition of anonymity as the information is not public. Cognition was valued at $26 billion in a May funding round and has been in early talks with investors for new financing at a valuation of at least $40 billion, Bloomberg News has reported. SpaceX and Cognition did not respond to requests for comment. The offer highlights Musk's willingness to spend heavily to compete in AI. SpaceX recently completed a $60 billion acquisition of Cursor, a fast-growing startup and central player in tech's "vibe coding" era. Cognition is similarly focused on helping automate engineering tasks. Musk's firm has been working to build more advanced AI tools to streamline tasks, including coding. Musk's AI venture, now known as SpaceXAI, has lagged competitors on selling to businesses, and carried out a series of job cuts and restructurings. Growth in AI is a key pillar of Musk's strategy for SpaceX, which has morphed into a rocket, satellite communications and computing conglomerate, supercharged by its historic initial public offering this summer. Founded in 2023, Cognition's flagship product is an AI agent called Devin that's designed to automate the programming process for engineers. SpaceX's interest in Cognition was driven not just by its technology, but its business progress, some of the people said. Cognition has partnered with a number of large firms, including Mercedes-Benz Group AG and GE Aerospace, according to its website. Its business relationships could help bolster SpaceXAI's traction with potential customers. Cognition Chief Executive Officer Scott Wu has previously been adamant, both publicly and in conversations with investors, that he's not interested in selling the business. He told Bloomberg in May that its $1 billion financing "allows us to stay independent and continue as an independent business, which is really important for us."