In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a fraction of its current valuation of $3 billion following SpaceX's agreement to acquire the company. This significant disparity has sparked debate about the handling of FTX's assets during its bankruptcy. SpaceX's planned acquisition of Cursor is part of Elon Musk's strategy to enhance his company's AI capabilities, particularly in coding tools.
The deal is contingent on SpaceX's planned initial public offering, which aims to achieve a $2 trillion valuation. The investment in Cursor was initially made by Alameda Research, a trading firm affiliated with FTX, in April 2022. After FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a substantial loss of potential recovery for creditors. This incident has been cited by Sam Bankman-Fried, the founder of FTX, as an example of the estate's mishandling of assets, which he claims could have been worth billions if managed differently.
The timing of the SpaceX deal has also raised questions about the bankruptcy administration's decisions, particularly given Bankman-Fried's assertions that FTX's estate could have achieved a significantly higher net asset value if it had held onto its assets. Despite FTX customers being repaid in full, the missed opportunity represented by the Cursor stake has become a focal point in discussions about the handling of FTX's assets and the potential for alternative outcomes.