Cognition Denies SpaceX Offer, Bloomberg Mentions Collaboration

Scott Wu claims that Cognition is not for sale and denies an acquisition attempt attributed to SpaceX. However, it is noted that while purchase discussions are no longer current, collaborative exchanges continue, possibly around SpaceX's computing capacity. This episode comes after SpaceX's acquisition of Cursor for $60 billion and as Cognition raised $1 billion at the end of May, with talks valuing it at $40 billion.

Cognition raises $1 billion at the end of May and aims for a $40 billion valuation

At the end of May, Cognition raised $1 billion, bringing its post-money valuation to $25 billion. It is reported that the company is currently engaged in preliminary discussions for a new fundraising round that would raise its valuation to $40 billion. The company remains one of the leading independent coding AI startups not integrated with a major model manufacturer. It is developing the programming agent Devin and counts enterprise clients such as Mercedes-Benz, Citi, and Goldman Sachs.

Scott Wu rejects a buyout; Bloomberg still talks of collaboration

Shortly after the publication of an article claiming an acquisition attempt by SpaceX, Scott Wu disputed the information on X, calling it inaccurate, adding that Cognition is not for sale and that no discussions have taken place between the two companies. According to a report published on a Wednesday and based on sources close to the matter, it is indicated that the purchase negotiations are no longer active. However, the media reports that the two companies continue to exchange ideas on a potential collaboration, which could involve Cognition using the computing capacity sold by SpaceX to third parties like Anthropic, a point Wu did not address in his denial.

SpaceX intensifies its AI bet: Cursor, Grok 4.6, xAI, and a 99% goal

SpaceX acquired Cursor for $60 billion, a deal finalized last week after a previous collaboration period. This month, Cursor and SpaceX jointly launched Grok 4.6, which shows improved performance on coding benchmarks and for complex tasks. Earlier this year, SpaceX also acquired xAI, which then went public in June, reaching a peak market capitalization close to $2.3 trillion. SpaceX's AI ambitions include the eventual construction of data centers in space, while the xAI venture remains in its early stages and has lagged behind competitors. Last week, Elon Musk stated internally that within four to five years, AI could represent 99% of SpaceX's value; reaching this milestone would require generating significantly more AI-related revenue.

From Windsurf to >80 hours/week requirements: Cognition's trajectory and methods

Last year, Cognition acquired the remaining assets of its competitor Windsurf after Google DeepMind recruited its CEO and key researchers as part of a $2.4 billion deal for talent and licenses. Following this merger, Cognition laid off 30 people and offered severance packages to the remaining 200 Windsurf employees; those who stayed had to accept strict expectations, including workweeks of over 80 hours and six days in the office. Elon Musk has, for his part, claimed to work up to 120 hours a week and sleep on office or factory floors, an ethic that, according to reported assessments, would not be out of place in his companies.

Grok has already sparked controversies; silence from companies

The Grok chatbot has been at the center of several controversies, including a "MechaHitler" incident last year and, this year, scandals involving non-consensual sexual images. When asked about the current situation, SpaceX and Cognition did not respond to requests for comment.