Did SpaceX Try to Buy an AI Coding Startup? The CEO Says No
Bloomberg reported on August 19, 2026, that SpaceX tried to buy Cognition, a startup that makes AI tools for writing computer code. Cognition's CEO, Scott Wu, denied the report the same day. He posted on X that the story was inaccurate, that Cognition is not for sale, and that the two companies have not been in talks. TechCrunch
Bloomberg also reported that while the acquisition talks are no longer happening, the two companies may still discuss working together. One possibility: Cognition could use SpaceX's computing power — the large data centers needed to run AI systems. TechCrunch
Wu did not address that second part. He denied the acquisition and the existence of talks but said nothing about a possible working relationship involving SpaceX's computers.
The report came just days after SpaceX completed a $60 billion stock deal to buy Cursor, another AI coding startup. That deal closed the week before. Cognition, meanwhile, raised $1 billion in May 2026 at a $25 billion valuation, meaning investors agreed the company was worth that much. Bloomberg also reported that Cognition is now in early talks for a new funding round at a $40 billion valuation. Bloomberg
The broader context here involves two trends happening at once. AI coding tools are ending up in the hands of companies that already own massive computing infrastructure. And the value investors place on these startups is rising fast. SpaceX's reported interest in Cognition follows its $60 billion Cursor purchase, suggesting a deliberate push into AI coding tools. Cognition's jump from a $25 billion valuation in May to early talks at $40 billion in under three months reflects intense investor demand in this area.
In my view, the part of this story that matters most is the one Wu did not address. An acquisition denial is a simple yes-or-no dispute. But the idea of Cognition using SpaceX's computing power points to a real problem for AI startups: they need enormous computing resources to function, and not all of them can get it. As AI systems grow more capable, access to computing power becomes a deciding factor in which companies succeed. Whether through buying, partnering, or sharing infrastructure, the connection between AI coding companies and those with computing power is worth watching.
The $60 billion valuation for the Cursor deal and the reported $40 billion target for Cognition's new round suggest investors expect these companies to be worth a lot in the future. Cognition's leap from $25 billion to a possible $40 billion in under three months shows how fast investor interest is moving.
The disagreement between Bloomberg's reporting and Wu's denial leaves the story partially settled. The acquisition attempt is disputed by the CEO of the company that was reportedly the target. The discussions about computing power remain unaddressed by Cognition. The early talks for a $40 billion funding round, if they go forward, would bring in new money regardless of any SpaceX involvement. The key question for readers to watch is whether the computing-power discussions turn into a real partnership. TechCrunch
