Elon Musk's SpaceX reportedly attempted to acquire AI coding startup Cognition as part of an aggressive push to compete with established artificial intelligence leaders, according to Bloomberg sources. The potential deal would have added another significant AI coding capability to SpaceX's growing portfolio, though Cognition CEO Scott Wu quickly denied the report.

Wu responded on X shortly after the Bloomberg story published, stating that Cognition "is not for sale" and that the companies have not engaged in acquisition discussions. This denial comes despite Bloomberg's reporting from sources familiar with the matter, highlighting the sensitivity around AI startup acquisitions in the current market.

The reported interest in Cognition follows SpaceX's recent $60 billion acquisition of AI coding startup Cursor, which officially closed last week. This massive deal represents part of Musk's broader strategy to position SpaceX as a major AI player, competing directly with OpenAI, Anthropic, and Google.

SpaceX's AI ambitions began materializing earlier this year when the company acquired Musk's separate AI venture, xAI. The combined entity subsequently went public in a blockbuster June IPO, with shares rising dramatically to achieve a peak market capitalization approaching $2.3 trillion. This valuation reflects investor confidence in SpaceX's ability to monetize AI technologies across multiple verticals.

Musk has been explicit about AI's central role in SpaceX's future value creation. In recent employee communications, he projected that artificial intelligence will constitute "99% of the value" of SpaceX within four to five years. Achieving this ambitious target requires substantial revenue growth from AI services, making strategic acquisitions and partnerships critical to the timeline.

AI-assisted coding has emerged as one of the most commercially viable applications of artificial intelligence technology. Anthropic's meteoric growth trajectory, powered largely by Claude Code adoption, demonstrates the significant revenue potential in this market segment. Enterprise customers are increasingly willing to pay premium prices for AI tools that demonstrably improve developer productivity and code quality.

The collaboration between SpaceX and Cursor predated their acquisition agreement, with both companies working together on advanced AI model development. This month, they jointly released Grok 4.6, a new model that achieves superior performance on coding benchmarks and complex multi-step agentic tasks. This collaboration model suggests how SpaceX might integrate future acquisitions.

Cognition would have provided immediate access to high-value enterprise customers through its Devin coding agent, which serves major corporations including Mercedes-Benz, Citi, and Goldman Sachs. This established customer base would have accelerated SpaceX's enterprise AI revenue generation while providing valuable market insights for product development.

The startup's financial trajectory reflects strong investor confidence in AI coding tools. Cognition raised $1 billion in May at a $25 billion post-money valuation, and Bloomberg reports the company is now in early discussions for additional funding at a $40 billion valuation. This rapid valuation increase demonstrates the premium investors place on AI coding capabilities.

While acquisition talks appear inactive, Bloomberg suggests the companies may still pursue collaboration arrangements. SpaceX currently monetizes excess computing capacity by selling it to other AI companies, including Anthropic, until internal demand requires the full infrastructure. This approach could provide a foundation for deeper Cognition integration without formal acquisition.

Cognition's market position as one of the largest independent AI coding startups makes it an attractive target for consolidation. The company strengthened its position last year by acquiring competitor Windsurf's remaining assets after Google DeepMind executed a $2.4 billion talent acquisition, hiring away Windsurf's CEO and key researchers while licensing the technology.

Following the Windsurf integration, Cognition implemented demanding operational standards, including 80-hour work weeks and mandatory six-day office attendance. These requirements align with Musk's well-documented work culture, where he reportedly works up to 120 hours weekly and frequently sleeps at company facilities.

The broader context reveals intensifying competition for AI coding talent and technology. Major tech companies are aggressively pursuing acquisitions and talent deals to secure competitive advantages in this rapidly growing market segment. For independent startups like Cognition, maintaining autonomy while scaling operations presents ongoing challenges.

SpaceX's AI strategy extends beyond coding tools to include ambitious projects like space-based data centers, reflecting Musk's vision of integrating AI capabilities with space infrastructure. However, the xAI business remains relatively early-stage compared to competitors, and the Grok chatbot has faced controversies that complicate enterprise customer acquisition.

This acquisition attempt underscores the consolidation pressure facing AI startups as established tech giants seek to dominate emerging market segments through strategic acquisitions and partnerships.