SpaceX held talks to acquire AI coding startup Cognition - report

Investing.com -- SpaceX approached artificial intelligence coding startup Cognition AI Inc. about a potential acquisition, Bloomberg reported Wednesday, marking what would have been its second major takeover in recent months as it expands its AI capabilities.

The acquisition discussions are no longer active, but both companies remain in talks about potential collaboration, including an arrangement for Cognition to use SpaceX's computing infrastructure, according to the report.

Cognition was valued at $26 billion during a May funding round and has entered early discussions with investors for new financing at a valuation of at least $40 billion, Bloomberg News previously reported.

Elon Musk's firm has been developing more advanced AI tools to automate tasks, including coding. Musk's AI venture, now called SpaceXAI, has fallen behind competitors in business sales and has implemented multiple rounds of job cuts and organizational changes.

AI growth represents a central component of Musk's strategy for SpaceX, which has expanded from a rocket company into a conglomerate encompassing satellite communications and computing operations, boosted by its initial public offering this summer.

Founded in 2023, Cognition's primary product is an AI agent named Devin that automates the programming process for engineers. SpaceX's interest in Cognition stemmed from both its technology and business development, the report stated.

You May Also Be Interested In

• SpaceX attempted to acquire AI coding startup Cognition - Bloomberg
• U.S. debt tops $40 trillion
• Alpha Compute adds ex-Twilio executive Mike Huskins to its board