In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, which would now be valued at approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This significant increase in value has brought attention to the estate's handling of assets during the bankruptcy process. SpaceX's acquisition deal includes the option to buy Cursor for $60 billion or pay $10 billion if the full acquisition does not proceed, with the latter serving as a breakup fee.
The deal is part of Elon Musk's efforts to enhance SpaceX's AI coding capabilities, particularly through its subsidiary xAI. 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 roughly 5% stake in the company.
After FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a missed opportunity for creditors. This event has sparked debate about the estate's asset liquidation strategy, with Bankman-Fried arguing that a more patient approach could have yielded better outcomes for customers.
The timing of this revelation is particularly noteworthy, given the ongoing discussions about FTX's bankruptcy administration and the potential for a pardon for Bankman-Fried, who is currently serving a 25-year federal sentence.