A 5% stake in AI startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be worth approximately $3 billion following SpaceX's $60 billion acquisition deal. This development has brought attention to the significant value that could have been realized by FTX's creditors if the stake had not been sold. SpaceX's acquisition is part of Elon Musk's strategy to enhance his company's AI capabilities, particularly in coding tools. The deal includes a $10 billion payment option if the full acquisition does not proceed, which is tied to SpaceX's planned initial public offering.
The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022, representing a 5% stake in the company. After FTX's collapse, the stake was sold by the court-appointed estate for the same amount, resulting in a missed opportunity for a 15,000x return.
This incident has been cited by Bankman-Fried as an example of the estate's failure to maximize recovery for creditors during the bankruptcy process. The case highlights the potential consequences of liquidating assets too quickly during bankruptcy proceedings and the importance of considering the long-term value of investments.