In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a sum that would be equivalent to approximately $3 billion today, given SpaceX's recent acquisition deal valuing the company at $60 billion. This substantial disparity has brought attention to the estate's handling of assets during the bankruptcy process. SpaceX's decision to acquire Cursor is part of Elon Musk's strategy to enhance his AI coding capabilities, particularly through his company xAI, which he believes is currently lagging behind competitors like OpenAI and Anthropic.
The acquisition is contingent upon SpaceX's planned initial public offering, which aims to achieve a $2 trillion valuation. Meanwhile, the investment in Cursor by Alameda Research, a trading firm founded by Sam Bankman-Fried, has become a focal point in the discussion about the estate's asset management. Bankman-Fried has been vocal about his belief that the estate's rapid liquidation of assets, including the Cursor stake, resulted in significant losses for creditors. This incident may further fuel his arguments, as the value of the stake has increased dramatically since its sale.
The timing of this revelation is particularly noteworthy, given Bankman-Fried's ongoing efforts to revisit his case and the advocacy of his parents for a pardon, citing the repayment of FTX customers and questioning the handling of the estate's assets.