In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that pales in comparison to its current worth of approximately $3 billion, following SpaceX's recent agreement to acquire the company at a $60 billion valuation. Elon Musk's SpaceX has secured the right to purchase Cursor later this year for $60 billion or pay $10 billion if the acquisition does not proceed, as part of his efforts to bridge the gap with competitors in the AI coding tools space. The deal has been delayed due to SpaceX's planned initial public offering, which is targeting a $2 trillion valuation.
The crypto connection lies in Alameda Research's $200,000 investment in Anysphere, the company behind Cursor, in April 2022, which bought roughly 5% of the company at a $4 million valuation. One year later, following FTX's collapse, the court-appointed estate sold the Cursor stake for the same $200,000, resulting in a significant loss for creditors. This missed opportunity has sparked debate, particularly from Sam Bankman-Fried, who argues that FTX's estate destroyed billions in value by liquidating assets too quickly during the bankruptcy.
The timing of the SpaceX acquisition has awkward implications for FTX's bankruptcy administration, with Bankman-Fried's claims of destroyed value potentially gaining traction. Despite FTX customers being repaid in full, they did not receive the upside from the assets' subsequent appreciation in value, including the substantial increase in the Cursor stake's worth.