A 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 comes as SpaceX, led by Elon Musk, aims to bridge the gap with competitors in AI coding tools. The deal allows SpaceX to purchase Cursor for $60 billion or pay a $10 billion breakup fee, with the acquisition expected to take place later this year. The investment in Cursor was initially made by Alameda Research, founded by Sam Bankman-Fried, in April 2022, with a $200,000 investment for a 5% stake in the company.
After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant loss of potential recovery for creditors. This incident has sparked debate, particularly from Bankman-Fried, who argues that the estate's liquidation of assets too quickly during the bankruptcy destroyed billions in value.
The timing of the SpaceX acquisition has brought attention to the estate's handling of assets, with the stake's current valuation representing a 15,000x return on the initial investment. While FTX customers have been repaid in dollar terms, they did not benefit from the upside of the assets sold during the bankruptcy, including the significant increase in value of the Cursor stake.