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 agreement to acquire the company at a $60 billion valuation. This development is a result of SpaceX's planned acquisition, which is part of Elon Musk's efforts to enhance his company's AI coding capabilities. The acquisition is contingent on SpaceX's planned initial public offering, targeting a $2 trillion valuation. The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022.
The subsequent sale of the stake by FTX's estate has sparked debate, with Bankman-Fried arguing that the estate's liquidation of assets was too hasty and resulted in significant losses for creditors. The Cursor stake's massive increase in value serves as a prime example of the potential value that could have been realized if the assets had been held rather than sold.
This incident is likely to feature prominently in ongoing discussions about FTX's bankruptcy and the treatment of its assets.