A 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be worth 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 valuation, with the stake's value increasing by roughly 15,000 times. The deal is part of Elon Musk's efforts to enhance SpaceX's AI coding capabilities, particularly through his company xAI, which he believes is currently behind competitors. The acquisition is expected to take place later this year, with SpaceX having the option to pay $10 billion if the full acquisition does not proceed.
The situation has sparked debate, especially given Sam Bankman-Fried's arguments that the FTX estate's rapid liquidation of assets during bankruptcy destroyed significant value for creditors. The sale of the Cursor stake has become a prime example of the potential value that could have been realized if the estate had held onto its assets, with the $3 billion valuation of the stake now being cited as a key example of the missed recovery opportunities.