In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has drastically changed following SpaceX's recent agreement to acquire the company at a staggering $60 billion. This deal not only underscores the rapid growth of Cursor but also brings to light one of the most substantial missed recoveries in crypto history. The transaction is part of Elon Musk's strategy to bolster SpaceX's AI capabilities, particularly in AI coding tools, an area where the company currently lags behind competitors like OpenAI and Anthropic.
SpaceX has opted for a delayed acquisition, choosing instead to pay a $10 billion breakup fee due to its upcoming initial public offering, which aims for a $2 trillion valuation. The crypto community's interest in this deal stems from Alameda Research's initial $200,000 investment in Anysphere, the company behind Cursor, in April 2022. This investment, which equated to roughly 5% of the company at a $4 million valuation, was sold by FTX's estate for the same amount a year later, following the collapse of FTX and Alameda. The significant disparity between the sale price and the current valuation of $3 billion, facilitated by SpaceX's acquisition, represents a 15,000x return that could have been realized by the creditors had the estate not liquidated the asset.
This oversight has sparked debate, particularly from Sam Bankman-Fried, who argues that the rapid liquidation of assets during the bankruptcy destroyed billions in potential value for customers. The timing of this revelation is especially poignant as it aligns with Bankman-Fried's assertions from prison that a more patient approach to asset management could have resulted in higher recoveries for FTX customers. While customers have been reimbursed in full, the potential upside from assets sold during the bankruptcy, such as the Cursor stake, now valued at $3 billion, underscores the complexity and challenges of navigating asset valuation and recovery in the crypto space.