In a stunning turn of events, a 5% stake in AI coding startup Cursor, sold by FTX's estate for $200,000 in April 2023, would now be worth approximately $3 billion following SpaceX's acquisition agreement at a $60 billion valuation. This deal, orchestrated by Elon Musk, aims to bridge the gap with competitors in the AI coding tools sector. The sale of the Cursor stake by FTX's estate has raised eyebrows, particularly given the significant valuation increase and the potential implications for FTX's creditors. The transaction has also sparked debate about the handling of FTX's assets during its bankruptcy, with founder Sam Bankman-Fried arguing that the estate's rapid liquidation of assets destroyed billions of dollars in value.
The Cursor stake's phenomenal growth, from a $4 million valuation in 2022 to $60 billion today, serves as a prime example of the potential upside that FTX customers missed out on due to the estate's decision to sell assets during the bankruptcy process.