SpaceX AI Buyout Bid for Cognition Stalls as Startup Opts for Independence

SpaceX recently tried to buy artificial intelligence coding startup Cognition AI, but the buyout talks fell through without a deal. Instead of selling out, Cognition prefers to stay independent. The startup builds an AI agent called Devin that automates software engineering tasks, and it recently reached a valuation of $26 billion in May.

While the acquisition is off the table, the two companies are reportedly discussing a compute partnership. This deal would let Cognition use computing capacity from SpaceX. Cognition already has strong business partnerships with major names like Mercedes Benz and GE Aerospace, which explains why the startup wants to protect its standalone status.

This outcome contrasts with the recent $60 billion Cursor acquisition by SpaceX, which successfully closed in August. SpaceX stock has seen recent volatility following its June initial public offering, trading around $139 ahead of a major insider share unlock. Traders will be watching to see if SpaceX pursues other AI partnerships as its tech division restructures.