Crypto by no means sleeps, and neither do its billion-dollar blunders.
In response to FT, AI code editor Cursor simply closed a jaw-dropping $900 million funding spherical at a $9 billion valuation.
However whereas high VCs like Thrive Capital, a16z, and Accel are celebrating, there’s one title obviously lacking from the winners’ circle: FTX. Right here’s why.
From $200K to $500M: What Went Mistaken?
Again in 2022, Alameda Analysis – FTX’s sister buying and selling agency – quietly invested $200,000 into Cursor’s seed spherical. Quick ahead to at present, and that stake may very well be value an estimated $500 million.
Sadly for FTX collectors, the platform’s liquidators bought it off for the precise quantity it was bought at: $200,000. No markup.Only a clear exit… from half a billion {dollars} in potential restoration. Ouch, proper?
Cursor’s Spectacular Rise
Cursor, constructed by Anysphere Inc., is making an attempt to redefine how builders write code. With a smooth split-screen interface and AI-powered chatbot, Cursor permits customers to automate complicated coding duties utilizing easy pure language prompts. It analyzes, breaks down duties, fetches context from documentation, and applies real-time adjustments.
Its engine runs on fashions from OpenAI and Google, together with its personal inner mannequin, Cursor-Quick. And with over $200 million in annual recurring income, the momentum is nice.
FTX’s Loss, Huge Tech’s Achieve?
This funding spherical wasn’t too hush-hush. Thrive Capital led the $900M funding, the identical agency that backed OpenAI’s $6.6B spherical final 12 months.
The excitement? OpenAI reportedly tried – and failed – to accumulate Anysphere earlier this 12 months. They’re now eyeing Windsurf (Exafunction Inc.) for as much as $3 billion as a substitute.
If we’re being actual…
This looks as if a serious loss for FTX. Is there greater than meets the attention? Guess we’ll know with time.