Following SpaceX's recent announcement to acquire AI coding startup Cursor at a valuation of $60 billion, it has been revealed that FTX's bankruptcy estate sold its 5% stake in the company for $200,000 in April 2023, a stake now worth approximately $3 billion. This significant increase in value is attributed to SpaceX's planned acquisition, which includes the option to purchase the company for $60 billion or pay $10 billion if the full acquisition does not proceed. The deal is part of Elon Musk's strategy to enhance SpaceX's AI capabilities, particularly in AI coding tools, an area where the company currently lags behind competitors. The acquisition has also brought attention to FTX's handling of its assets during bankruptcy, with founder Sam Bankman-Fried arguing that the estate's decision to liquidate assets too quickly resulted in the destruction of billions of dollars in value.
The sale of the Cursor stake has become a prime example of this, with the estate selling the stake for the same $200,000 that Alameda Research had initially invested, thereby missing out on a potential 15,000% return. This incident has sparked debate about the management of FTX's assets during its bankruptcy and the potential consequences of forced selling, with Bankman-Fried's family and supporters likely to cite the Cursor stake as evidence of the value destroyed by the estate's actions.