In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has skyrocketed to approximately $3 billion following SpaceX's acquisition deal at a $60 billion valuation. The deal marks a strategic move by Elon Musk to bridge the gap with competitors in the AI coding tools sector.
The initial investment in Cursor was made by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022, representing a 5% stake in the company. After FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a significant loss of potential recovery for creditors. This incident has sparked debate, with Bankman-Fried arguing that the estate's liquidation of assets was too hasty, resulting in the destruction of billions of dollars in value. The timing of the SpaceX acquisition has brought renewed attention to the issue, with the Cursor stake's valuation increase representing a missed opportunity for FTX's estate and its creditors.