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 significant increase in value is a result of SpaceX's planned acquisition, which is part of Elon Musk's efforts to enhance his company's AI coding capabilities and close the gap with competitors like OpenAI and Anthropic. The deal is contingent on SpaceX's planned initial public offering, which is targeting a $2 trillion valuation, with a $10 billion breakup fee if the acquisition does not proceed.
The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022, with a $200,000 investment for a 5% stake in the company. However, after FTX's collapse, the stake was sold by the court-appointed estate for the same $200,000, resulting in a significant loss of potential recovery for creditors. This missed opportunity has sparked debate, particularly from Bankman-Fried, who has argued that the estate's decision to liquidate assets too quickly during the bankruptcy destroyed billions in value and could have resulted in customers receiving more than their initial investments if the process had been handled differently.
The value of the Cursor stake has increased by approximately 15,000% since its sale, highlighting the potential consequences of the estate's decision. While FTX customers have been repaid in full, they did not benefit from the upside of the assets sold during the bankruptcy, including the significant increase in value of the Cursor stake.