In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000. However, with SpaceX's recent agreement to acquire the company at a $60 billion valuation, that same stake would now be worth approximately $3 billion. This development comes as SpaceX plans to either acquire Cursor for $60 billion or pay $10 billion if the full acquisition does not proceed, with the goal of closing the gap with competitors in AI coding tools. The deal is part of Elon Musk's strategy to enhance SpaceX's AI capabilities.
The stake was originally acquired by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022, representing a 5% ownership in the company. Following FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant missed opportunity for creditors. This incident has sparked debate, particularly given Bankman-Fried's arguments that the estate's rapid asset liquidation destroyed billions in value, and that customers could have received more if the process had been handled differently.
The sale of the Cursor stake has become a prime example of the potential value that could have been realized if the assets had been held rather than sold. As FTX customers have been repaid in full, the focus now shifts to the potential upside that could have been achieved, with the Cursor stake alone representing a forgone recovery of approximately $3 billion.