The value of a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, has skyrocketed to approximately $3 billion following SpaceX's recent agreement to acquire the company at a $60 billion valuation. This development comes as SpaceX, led by Elon Musk, seeks to bridge the gap with competitors in the AI coding tools sector. The deal allows SpaceX to either acquire Cursor for $60 billion or pay $10 billion if the full acquisition does not proceed, with the latter serving as a breakup fee as the company prepares for its initial public offering targeting a $2 trillion valuation. The stake in question originated from a $200,000 investment by Alameda Research in Anysphere, the company behind Cursor, in April 2022, which granted a 5% ownership at a $4 million valuation.
After FTX's collapse and subsequent bankruptcy, the court-appointed estate sold the stake for the same $200,000, resulting in a missed recovery of roughly $3 billion. This significant loss has sparked debate, particularly from Sam Bankman-Fried, who argues that the estate's swift liquidation of assets destroyed substantial value, potentially leaving customers with less than they could have received if the assets had been held. The trajectory of Cursor's valuation, from $4 million to $60 billion in three years, is one of the steepest in software startup history, further emphasizing the magnitude of the missed opportunity.
While FTX customers have been reimbursed in full, the substantial upside from assets like the Cursor stake, now valued at $3 billion, was not realized, supporting Bankman-Fried's claims of the estate's mishandling of assets during the bankruptcy process.