A 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be worth approximately $3 billion, following SpaceX's agreement to acquire the company at a $60 billion valuation. This development has brought attention to the significant gap between the initial sale price and the current valuation, with the stake's value increasing by a substantial 15,000x return. The transaction has also sparked debate about the timing of the sale, with some arguing that the estate's decision to liquidate assets quickly may have resulted in missed opportunities for recovery.
The case has been cited by Sam Bankman-Fried, currently serving a 25-year federal sentence, as an example of the value destroyed by the estate's actions during the bankruptcy process. The deal has also been seen as a strategic move by Elon Musk to close the gap with competitors in the AI coding tools space, with SpaceX holding off on immediate acquisition due to its planned initial public offering.