In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has since skyrocketed to $3 billion following SpaceX's acquisition agreement. This deal has brought attention to the significant losses incurred by FTX's estate, which could have potentially recovered billions of dollars if it had held onto its assets. The acquisition is part of Elon Musk's efforts to enhance SpaceX's AI capabilities, particularly in the area of AI coding tools, where the company currently lags behind competitors.
The sale of the Cursor stake has sparked controversy, with Sam Bankman-Fried, the founder of FTX, arguing that the estate's decision to liquidate assets too quickly has resulted in significant losses for creditors. The timing of the sale has also raised questions about the estate's management of assets during the bankruptcy process. The incident has highlighted the potential risks and consequences of forced selling, particularly in the context of rapidly evolving technologies like AI.