FTX liquidators dumped $500 million in stock on an AI startup cursor – now worth billions

The code never sleeps, and it doesn’t even have a multi-billion dollar impulse.

According to WU BlockchainAI Code Editor Cursor closed its jaws, repeatedly raising $900 million at a $9 billion valuation.

But while top VCs like Thrive Capital, A16Z, Accel and more are blessings, there is one name that is totally missing from the winner’s circle: there is FTX. This is why.

From $200k to $500 million: What’s wrong?

In 2022, FTX’s sister trading company Alameda Research -Alameda Research quietly invested $200,000 in Cursor’s seed round. Fast forward to today, that interest may be worth estimating 500 million dollars.

Unfortunately for FTX creditors, the platform liquidator sold it for the exact amount they purchased, the exact amount they purchased. There is no markup. A clean exit from $5 billion in potential recovery. It hurts isn’t it?

Impressive rise of the cursor

Built by Anysphere Inc., Cursor is about to redefine how developers write their code. A sophisticated split screen interface and AI-powered chatbot allow users to automate complex coding tasks using simple natural language prompts. Analyze, analyze tasks, get context from documents, and apply real-time changes.

The engine runs on its own internal model, Cursor-Fast, which is a model from Openai and Google. And with more than $200 million recurring revenues per year, the momentum is amazing.

FTX losses, Big Tech profits?

This funding round was not very quiet. Thrive Capital led the same $900 million investment that supported Openai’s $6.6 billion round last year.

Buzz? Openai reportedly tried to acquire Anysphere earlier this year. They are now looking at Windsurf (Exafunction Inc.) for up to $3 billion instead.

If we are the real thing…

This seems like a huge loss for FTX. Is there anything more than just eye-opening? I think you’ll know over time.