A stake in AI coding startup Cursor, sold by FTX's estate for $200,000 in April 2023, is now worth approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. Elon Musk's SpaceX has secured the right to purchase Cursor for $60 billion or pay a $10 billion breakup fee if the acquisition does not proceed. This deal aims to close the gap with competitors in AI coding tools. The investment was initially made by Alameda Research, founded by Sam Bankman-Fried, in April 2022, purchasing roughly 5% of the company at a $4 million valuation.
After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant loss for creditors. The timing of this sale has raised questions about FTX's bankruptcy administration, with Bankman-Fried arguing that the estate destroyed billions in value by liquidating assets too quickly. The value of the Cursor stake has increased by approximately 15,000% since its sale, highlighting the potential upside that could have been realized if the estate had held onto the asset.
While FTX customers have been repaid in full, they did not receive the potential upside from the assets sold during the bankruptcy process, including the significant increase in value of the Cursor stake.