The value of FTX's 5% stake in AI coding startup Cursor has skyrocketed to approximately $3 billion, following SpaceX's recent agreement to acquire the company at a $60 billion valuation. This development has brought attention to a significant missed recovery opportunity for FTX's bankruptcy estate, which sold the stake for $200,000 in April 2023. The estate's decision to liquidate the asset has been criticized by FTX founder Sam Bankman-Fried, who argues that the estate destroyed billions of dollars in value by selling assets too quickly during the bankruptcy process.
The acquisition is part of Elon Musk's efforts to enhance SpaceX's AI coding capabilities and close the gap with competitors like OpenAI and Anthropic. The deal has also sparked debate about the timing of the estate's asset sale and its potential impact on FTX customers, who have been made whole in dollar terms but missed out on the significant upside potential of the Cursor stake.