00:00Moving in the opposite direction is SpaceX down about 3%. The shares were already lower,
00:04but we just learned a little while ago that the firm actually approached the coding startup
00:08Cognition AI about a potential acquisition. Ed Lolo joins us right now to talk a little bit more
00:13about this. Ed, why is this important? What was Elon Musk fishing around for here?
00:19Yeah, it's important because Cognition is one of the hottest properties in agentic AI and AI
00:24coding right now. We recently reported it was valued or in talks to be valued at about $40
00:29billion. So at some point in the last couple of months, SpaceX AI approached Cognition and made
00:36an offer, a proposal to acquire them. And my understanding is Cognition rebuffed them,
00:41said no, there isn't a price that Cognition was willing to sell itself at. But it's just
00:48recognition for SpaceX and Elon Musk that the growth in the future is AI. And Cognition's
00:55coding tool or agent Devin has become successful, quite pervasive in the ecosystem. And, you know,
01:03it's a very interesting story. I think the added detail is that our understanding is they're
01:08continuing to talk, but about technology. You know, SpaceX AI has the business of renting out
01:13compute capacity. Devin is a useful AI coding agent. And those kind of technology talks continue
01:20outside of the M&A context. Ed, this is a fantastic scoop from you and the team. Talk to us
01:24about
01:24Elon Musk's willingness to spend heavily on AI. I mean, they just recently acquired Cursor as well,
01:30which is a fast-growing startup. Yeah. So, you know, the chronology is
01:33interesting. Our understanding, right, is that there are no active M&A talks right now between
01:37SpaceX and Cognition. But they just closed the Cursor deal, a $60 billion deal. Our latest reporting
01:43is that Cognition is in talks to raise money at a $40 billion valuation. It also raises the question
01:49of like, well, those companies are very similar, right? They are both coding platforms. Cursor
01:54is basically an AI-powered coding tool that can rewrite code, whereas I suppose the distinction
02:00with Cognition is Devin is that it's a more fully autonomous agent. The point that sources make to
02:05me is that Cognition has moved very fast to actually sell its products in the real world.
02:10They have this, like, army of forward-deployed engineers that have allowed them to get into pretty
02:15run-of-the-mill standard Fortune 500 companies that use Devin. And to Elon Musk and SpaceX,
02:20that's attractive because they've not had as much traction with the enterprise customer.
02:24Maybe they saw Cognition as a way into that, different from the pure play technology acquisition
02:29of Cursor.
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