A 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 acquisition agreement at a $60 billion valuation. This development comes as SpaceX plans to acquire Cursor, with Elon Musk aiming to bridge the gap with competitors in AI coding tools. The deal has brought attention to the crypto aspect, where Alameda Research, founded by Sam Bankman-Fried, initially invested $200,000 in Anysphere, the company behind Cursor, in April 2022. After FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a significant loss for creditors.
The timing of the sale has raised questions about the handling of FTX's assets during bankruptcy, with Bankman-Fried arguing that the estate's rapid liquidation destroyed billions in value. The Cursor stake's valuation increase represents a 15,000x return, highlighting the potential upside that could have been realized if the estate had held onto the assets. This example is likely to feature in ongoing discussions about the case against Bankman-Fried and the campaign for his pardon.