SpaceX's Acquisition Talks with Cognition AI Stall Amid Valuation Hurdles

SpaceX's discussions regarding the acquisition of Cognition AI, known for its Devin AI coding agent, have reportedly come to a halt. According to sources, the talks are no longer active, although both companies are exploring a potential computing partnership instead.

Cognition AI, founded in 2023, has seen its valuation soar from $10.2 billion in 2025 to $26 billion earlier this year, with expectations of reaching $40 billion in a new funding round. This growth trajectory has given Cognition less incentive to pursue a buyout, as emphasized by CEO Scott Wu, who has expressed the importance of maintaining the company's independence.

This stalled acquisition follows SpaceX's successful $60 billion acquisition of Cursor, the AI-powered code editor, completed on August 14. The Cursor deal marked a significant expansion for SpaceX in the AI sector, contrasting with the unsuccessful bid for Cognition AI.

Despite the setback, Cognition's partnerships with major companies like Mercedes-Benz and GE Aerospace highlight its business strength, which SpaceXAI seeks to leverage, even without a takeover. The outcome of any future negotiations may hinge on how Cognition's upcoming funding round influences its valuation.