Situational Awareness Hedge Fund's AI Bets Lead to Significant Losses
Situational Awareness, a hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, suffered significant losses in July after betting big on AI stocks. The fund, backed by Silicon Valley and Wall Street investors, invested $400 million in a privately held company days after facing margin calls due to a 78% drop in assets. Aschenbrenner sold most of the fund's public equity portfolio to Citadel to repay lenders and retain private holdings.4 sourcesSee all sources