In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has since skyrocketed to approximately $3 billion following SpaceX's acquisition agreement at a $60 billion valuation. This development has brought attention to the significant gap between the initial sale price and the current worth of the stake, with the latter representing a substantial 15,000x return.
The acquisition is part of Elon Musk's efforts to enhance SpaceX's AI capabilities, particularly in the area of AI coding tools, where the company currently lags behind competitors. The deal has also sparked renewed debate about the handling of FTX's assets during its bankruptcy, with founder Sam Bankman-Fried arguing that the estate's decision to liquidate assets too quickly resulted in the destruction of billions of dollars in value. The sale of the Cursor stake has become a prime example of this issue, with the estate's decision to sell the stake for $200,000 now appearing particularly ill-timed in light of the company's subsequent valuation. The incident is likely to feature prominently in ongoing discussions about the bankruptcy and its aftermath, including the campaign by Bankman-Fried's family for a pardon.