The value of a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, has skyrocketed to approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This development has brought attention to the significant gap between the initial sale price and the current worth of the stake, with the latter representing a substantial 15,000% return. The acquisition is part of Elon Musk's strategy to boost SpaceX's AI capabilities and close the gap with competitors like OpenAI and Anthropic.
The deal has also sparked debate about the handling of FTX's assets during its bankruptcy, with founder Sam Bankman-Fried arguing that the estate's decision to liquidate assets quickly destroyed billions of dollars in potential value. The timing of the sale has raised questions about the bankruptcy administration's approach, particularly given the remarkable growth trajectory of Cursor since its AI coding product launch in 2023. While FTX customers have been repaid in full, they have not benefited from the substantial upside of the assets sold during the bankruptcy process, including the Cursor stake, which has become a prime example of the potential value that could have been realized.