Following SpaceX's announcement to acquire Cursor at a $60 billion valuation, it has been revealed that FTX's bankruptcy estate sold a 5% stake in the AI coding startup for $200,000 in April 2023, a sum that would now be equivalent to approximately $3 billion. This substantial disparity has brought attention to the significant losses incurred by FTX's estate during its bankruptcy proceedings. SpaceX's acquisition deal, led by Elon Musk, aims to enhance the company's AI coding capabilities and close the gap with competitors like OpenAI and Anthropic.
The agreement allows SpaceX to either acquire Cursor for $60 billion later this year or pay a $10 billion breakup fee, pending the company's planned initial public offering. The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, which purchased a 5% stake in the company for $200,000 in April 2022. However, after FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a substantial loss for the creditors. This incident has sparked debate, with Bankman-Fried arguing that the estate's decision to liquidate assets too quickly destroyed billions of dollars in value, and that customers could have received greater compensation if the assets had been held onto.
The case highlights the significant potential losses incurred by FTX's estate and the importance of strategic asset management during bankruptcy proceedings.