In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a stake now valued at approximately $3 billion after SpaceX agreed to acquire the company at a $60 billion valuation. SpaceX has the option to purchase Cursor later this year for $60 billion or pay $10 billion if the acquisition does not proceed, as part of Elon Musk's efforts to close the AI coding tool gap with competitors.
The deal has brought attention to the crypto aspect, where Alameda Research, founded by Sam Bankman-Fried, invested $200,000 in Anysphere, the company behind Cursor, in April 2022. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant loss for creditors. This missed opportunity has sparked controversy, with Bankman-Fried arguing from prison that the estate's quick liquidation of assets destroyed billions in value, and the Cursor stake's 15,000x return potential serving as a prime example. The timing is particularly awkward for FTX's bankruptcy administration, as the estate's decision to sell assets quickly has been questioned, and the Cursor stake's valuation has become a symbol of the potential value that could have been realized if the assets had been held.