The value of FTX's stake in AI coding startup Cursor has skyrocketed to approximately $3 billion, following SpaceX's agreement to acquire the company at a $60 billion valuation. This stark contrast is a result of FTX's bankruptcy estate selling the stake for $200,000 in April 2023, a year after Alameda Research initially invested the same amount for a 5% stake in the company. The sale has raised questions about the timing and handling of the asset sale, with the gap between the sale price and the current valuation representing a substantial 15,000x return. This missed opportunity has sparked debate, particularly from Sam Bankman-Fried, who argues that the estate's liquidation of assets was too hasty and ultimately destroyed billions in value.
The acquisition deal has also brought attention to the significant growth of Cursor, which launched its AI coding product in early 2023 and has since become one of the most valuable software startups in history.