In a remarkable turn of events, a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be valued at approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This acquisition is part of Elon Musk's strategy to close the gap with competitors in the AI coding tools sector. The deal has brought attention to the crypto aspect, as Alameda Research, founded by Sam Bankman-Fried, had initially invested $200,000 in Anysphere, the company behind Cursor, in April 2022. This investment, which bought roughly 5% of the company at a $4 million valuation, was sold by the FTX estate for the same amount after the company's collapse.
The significant disparity between the selling price and the current valuation has sparked debate, particularly given Bankman-Fried's arguments that the estate's rapid liquidation of assets destroyed billions in value. The timing of this revelation is awkward for FTX's bankruptcy administration, and it is likely to feature prominently in discussions about the estate's handling of assets and the potential for a pardon for Bankman-Fried.