A 5% 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 plans to either acquire Cursor later this year for $60 billion or pay $10 billion if the full acquisition does not proceed, driven by Elon Musk's efforts to enhance xAI's competitive position in AI coding tools. The deal's timing raises questions about the handling of FTX's assets during its bankruptcy, particularly given that the sold stake would have represented a 15,000x return if retained.
This incident may bolster arguments made by Sam Bankman-Fried, currently serving a 25-year sentence, that the estate's rapid liquidation of assets destroyed significant value that could have benefited creditors and customers.