The recent agreement between SpaceX and Cursor has shed light on a substantial missed recovery for FTX's estate, which sold its 5% stake in the AI coding startup for $200,000 in April 2023. This stake would now be worth approximately $3 billion, considering SpaceX's $60 billion valuation of the company. The deal is part of Elon Musk's efforts to bridge the gap with competitors in the AI coding tools sector. Notably, the sale of the Cursor stake was part of FTX's bankruptcy proceedings, with the estate selling the stake for the same amount Alameda Research had initially invested.
This transaction has sparked debate, particularly given Sam Bankman-Fried's arguments that the estate's liquidation of assets was too hasty and resulted in significant losses for creditors. The timing of the SpaceX-Cursor deal has also raised questions about the handling of FTX's assets during the bankruptcy process, with some arguing that a more patient approach could have yielded better outcomes for customers and creditors. The Cursor stake's valuation increase from $200,000 to $3 billion represents a substantial missed opportunity, equivalent to a 15,000% return, and is likely to feature in ongoing discussions about the FTX bankruptcy and its aftermath.