The bankruptcy estate of FTX sold a 5% stake in AI coding startup Cursor for $200,000 in April 2023. Following SpaceX's agreement to acquire Cursor at a $60 billion valuation, this stake would now be worth approximately $3 billion.
This development comes as SpaceX plans to acquire Cursor, with the option to buy the company later this year for $60 billion or pay $10 billion if the full acquisition does not proceed. The deal is part of Elon Musk's strategy to close the gap with competitors in AI coding tools. The investment in Cursor was initially made by Alameda Research, the trading firm founded by Sam Bankman-Fried, in April 2022, with a $200,000 investment for a 5% stake.
After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a missed opportunity for creditors. This event has sparked debate, particularly from Sam Bankman-Fried, who argues that the estate's liquidation of assets too quickly during the bankruptcy destroyed billions in value.
The significant increase in Cursor's valuation highlights the potential upside that FTX customers missed out on, with the stake's value increasing by a factor of 15,000. This example is likely to be cited in ongoing discussions about the handling of FTX's assets during the bankruptcy process.