The recent agreement between SpaceX and AI coding startup Cursor, valued at $60 billion, has brought to light a substantial missed recovery for FTX's estate. In April 2023, the estate sold its 5% stake in Cursor for $200,000, a stake that would now be worth approximately $3 billion.
This significant disparity has sparked debate about the handling of FTX's assets during its bankruptcy. SpaceX's decision to acquire Cursor is part of Elon Musk's strategy to close the gap with competitors in the AI coding tools sector. The deal includes a $10 billion breakup fee, which will be paid if the full acquisition does not proceed.
The transaction is pending due to SpaceX's planned initial public offering, which aims for a $2 trillion valuation. The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022. The company's remarkable growth trajectory, with a valuation increase from $4 million to $60 billion in just three years, is one of the steepest in software startup history.
The sale of the Cursor stake has raised questions about the timing and handling of FTX's assets during its bankruptcy, with Sam Bankman-Fried arguing that the estate destroyed billions in value by liquidating assets too quickly. The case highlights the potential consequences of forced selling and the importance of strategic asset management during bankruptcy proceedings.