In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that would now be worth approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This significant increase in value has brought attention to the estate's decision to liquidate assets during the bankruptcy process.
The deal between SpaceX and Cursor is part of Elon Musk's efforts to enhance his company's AI coding capabilities and close the gap with competitors. The acquisition is expected to take place later this year, with SpaceX having the option to buy Cursor for $60 billion or pay $10 billion if the full acquisition does not proceed.
The crypto community is scrutinizing the transaction, particularly given the substantial return that could have been realized if the estate had held onto the stake. Sam Bankman-Fried, the founder of FTX, has been arguing from prison that the estate's decision to sell assets too quickly destroyed billions of dollars in value, and the Cursor deal serves as a prime example of the potential upside that was missed.
The timing of the sale has also raised questions about the estate's management of assets during the bankruptcy process. As the situation continues to unfold, it is likely that the Cursor deal will be cited as a key example of the value that could have been realized if the estate had taken a different approach.