In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that would now be approximately $3 billion following SpaceX's $60 billion acquisition deal. The transaction has brought attention to the significant gap between the initial sale price and the current valuation, with the difference representing a substantial missed recovery for FTX's creditors. SpaceX's decision to acquire Cursor is part of its strategy to enhance its AI capabilities, particularly in the area of AI coding tools, where it currently lags behind competitors.
The deal has also sparked debate about the management of FTX's assets during its bankruptcy, with some arguing that the estate's decision to liquidate assets too quickly may have resulted in significant losses for creditors. The Cursor stake's valuation has risen dramatically since its launch in early 2023, making it one of the steepest trajectories in software startup history. While FTX customers have been repaid in full, the substantial upside from the assets sold during the bankruptcy period, including the Cursor stake, has not been realized, highlighting the potential consequences of forced selling. The situation is likely to be cited by Sam Bankman-Fried's supporters as an example of the value destroyed by the estate's actions, and may feature in ongoing discussions about his case and the management of FTX's assets during its bankruptcy.