In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a decision that has come under scrutiny given the company's current valuation of $60 billion following SpaceX's acquisition agreement. This staggering difference in value represents a missed recovery of approximately $3 billion. The investment was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022 for $200,000, representing roughly 5% of the company at a $4 million valuation. The subsequent sale of this stake by the FTX estate has raised questions about the timing and strategy of the bankruptcy administration, particularly in light of Bankman-Fried's arguments that the estate's liquidation of assets was too hasty and destroyed significant value for creditors.
The acquisition by SpaceX, led by Elon Musk, is part of his effort to close the gap with competitors in AI coding tools, an area where his company, xAI, is currently lagging behind. The deal's structure allows for SpaceX to either acquire Cursor for $60 billion later this year or pay $10 billion as a breakup fee, with the latter serving as a contingency plan due to SpaceX's planned initial public offering, which targets a $2 trillion valuation. This development has significant implications for the ongoing discussions about FTX's bankruptcy and the potential for customers to have received greater recoveries if assets had been managed differently.