Following SpaceX's agreement to acquire Cursor at a $60 billion valuation, it has been revealed that a 5% stake in the AI coding startup, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be worth approximately $3 billion. This staggering difference in value has brought attention to the significant losses incurred by FTX's estate during its bankruptcy proceedings. SpaceX's decision to acquire Cursor is part of Elon Musk's strategy to enhance his company's AI coding capabilities and close the gap with competitors like OpenAI and Anthropic. The acquisition is expected to take place later this year, with SpaceX having the option to pay $10 billion if the full acquisition does not proceed.
The deal's timing has raised questions about the management of FTX's assets during its bankruptcy, with the company's founder, Sam Bankman-Fried, arguing that the estate's decision to liquidate assets too quickly resulted in significant losses for creditors. The Cursor stake, which was sold for the same $200,000 that Alameda Research had initially invested, represents a missed recovery of roughly $3 billion, highlighting the potential consequences of the estate's actions. This development is likely to feature prominently in ongoing discussions about the management of FTX's assets and the potential for a pardon for Bankman-Fried, who is currently serving a 25-year federal sentence.