Citadel has acquired the bulk of Situational Awareness's stock portfolio after the AI-focused hedge fund run by former OpenAI researcher Leopold Aschenbrenner faced heavy losses, according to sources familiar with the deal. Ken Griffin's firm, which manages about $71 billion in assets, is picking up the portion of the public portfolio that was financed by leverage from brokers.
71 billion USD
Citadel's assets under management
Situational Awareness, launched in 2024, was forced to unwind most of its public equities portfolio under pressure to either raise fresh capital or offload the book, and chose the latter, sources said. The fund's public holdings included stocks in Broadcom, Intel, and CoreWeave, according to its most recent regulatory filings. After the deal, Situational will retain a book of roughly $10 billion in stocks and private investments, including Anthropic, which it has not sold.
The transaction was facilitated by top Wall Street prime brokers including Goldman Sachs, JPMorgan Chase, Bank of America, and Citigroup, according to sources. The Wall Street Journal reported the deal on Thursday.
The deal follows a broader downturn in AI stocks that has hit hedge funds globally. Global hedge funds are experiencing their biggest monthly drawdown on record, and Asia-focused fundamental long-short funds are down 18.6% on average through July 28, according to a Goldman Sachs note. Stock-picking funds have been unwinding AI positions, covering shorts and selling longs in roughly equal amounts, per a Morgan Stanley note.
Aschenbrenner's fund, which previously managed about $20 billion in assets and employs around 20 people, had achieved a 439% return from the start of 2025 to the end of June. It attracted investors including Jane Street, Stripe co-founders Patrick and John Collison, and Meta executives Daniel Gross and Nat Friedman. The fund had used leverage to boost positions, similar to peers, and it is not clear whether it faced margin calls before the deal.
Updates
The transaction involved the offloading of a $16 billion equity portfolio to Citadel, though sources remain divided on whether the entirety of the fund's public holdings was sold. Reports indicate that Situational Awareness had attempted to raise fresh capital to address heavy losses prior to being bailed out by the firm. Additionally, it has been disclosed that fund founder Leopold Aschenbrenner is 24 years old and was previously dismissed from OpenAI in 2024 following an alleged information leak, a claim he continues to dispute.
The transaction involved Situational Awareness offloading a $16 billion equity portfolio to Citadel, though sources are currently divided on whether the firm sold its entire public holdings or only a significant portion. Reports also indicate that the fund had attempted to secure fresh capital from investors to cover heavy losses prior to the bailout deal.
The transaction involved the offloading of a $16 billion equity portfolio to Citadel, with sources characterizing the move as a bailout for the fund. While some reports claim the entire public equities portfolio was sold, this detail remains disputed. Additionally, it has been reported that the fund had previously sought to raise fresh capital from investors following significant losses in AI stocks.
The transaction involved the offloading of a $16 billion equity portfolio to Citadel, with reports indicating that Situational Awareness sought fresh capital following significant losses before ultimately being bailed out by the firm. While some sources claim the entire public equities portfolio was sold, this detail remains disputed.
Situational Awareness's assets under management peaked at $45 billion, with the firm offloading a $16 billion equity portfolio to Citadel while retaining its private company investments, including a $5 billion stake in Anthropic. Prior to the sale, the fund sought fresh capital unsuccessfully, as Aschenbrenner's July 24 investor letter failed to secure new commitments following a month where key holdings like SK Hynix and Bloom Energy dropped over 30%. While sources indicate the transaction functioned as a bailout, it is disputed whether the entirety of the fund's public equity portfolio was transferred to Citadel.
Situational Awareness's assets under management peaked at $45 billion before the fund's recent selloff, which included an offloaded equity portfolio reported to be worth $16 billion. While the firm sold the bulk of its public holdings to Citadel, it retained its private investments, including a $5 billion stake in Anthropic. Additionally, internal documents reveal the fund failed to secure fresh capital after a July 24 investor appeal, following significant losses in core holdings such as SK Hynix and Nebius Group.
Situational Awareness reportedly offloaded a $16 billion equity portfolio to Citadel, though the full extent of the divestment remains disputed. The firm, which saw assets under management peak at $45 billion, excluded its private investments in companies like Anthropic from the sale. Aschenbrenner had previously attempted to secure fresh capital following heavy losses in stocks such as SK Hynix and Bloom Energy, but the appeal failed to garner sufficient commitments.
The transaction involved the offloading of a $16 billion equity portfolio, though reports remain disputed on whether the entire public holdings were sold. Situational Awareness, which saw its assets under management peak at $45 billion, excluded its private investments—including a $5 billion stake in Anthropic—from the sale to Citadel. Following the rescue, Leopold Aschenbrenner's fund continues to face scrutiny over the strategy that led to recent losses, while global AI stocks have experienced a relief rally.
Situational Awareness reportedly offloaded a $16 billion equity portfolio to Citadel, with assets under management having previously peaked at $45 billion. The fund, which retains its private investments including a $5 billion stake in Anthropic, sought new capital after significant losses in stocks such as SK Hynix and SanDisk, but failed to secure the necessary commitments. While the rescue by Ken Griffin helped trigger a relief rally in global AI stocks, market participants remain divided on whether this signals the end of the recent volatility.
Situational Awareness's assets under management peaked at $45 billion before a 67% decline in July, though the fund remains up approximately 80% for the year. While the firm offloaded a significant equity portfolio to Citadel, it retained its private company investments, including a $5 billion stake in Anthropic. Additionally, Leopold Aschenbrenner's attempt to raise fresh capital from investors failed to secure the necessary commitments despite his efforts to position the recent market selloff as a buying opportunity.
Situational Awareness’s assets under management peaked at $45 billion, with the fund reportedly falling approximately 67% in July, though it remains up about 80% for the year. While the fund offloaded the bulk of its public equity portfolio to Citadel—a move that triggered a relief rally in global AI stocks—it has notably retained its private investments, including a $5 billion stake in Anthropic. Additionally, the fund attempted to sell $3.5 billion worth of Anthropic shares to a group led by Greenoaks and Sequoia Capital before withdrawing from the agreement.
Situational Awareness's assets under management peaked at $45 billion, with the fund suffering a 67% decline in July according to investor communications, despite remaining up approximately 80% year-to-date. While Citadel acquired the fund's leveraged public equity portfolio—which included significant stakes in Bitcoin miners and chipmakers—the firm opted not to sell its private investments, including a $5 billion position in Anthropic. Additionally, Leopold Aschenbrenner's attempt to raise fresh capital following these losses failed, and the fund reportedly withdrew from a separate deal to sell its Anthropic shares to a group led by Greenoaks and Sequoia Capital.
Situational Awareness reportedly offloaded a $16 billion equity portfolio to Citadel, with the fund's assets under management having peaked at $45 billion before a 67% decline in July. While the firm did not sell its private investments, including a $5 billion stake in Anthropic, it previously attempted to sell $3.5 billion of its Anthropic shares to a group led by Greenoaks and Sequoia Capital before withdrawing the deal. SEC filings reveal the fund held significant positions in Broadcom, Intel, CoreWeave, and $1.11 billion in Bitcoin mining companies as of March 31, while its hardest-hit stocks like SK Hynix, SanDisk, and Bloom Energy faced monthly losses exceeding 30%.
Situational Awareness reportedly offloaded a $16 billion equity portfolio to Citadel, though the extent of the sale remains disputed as some reports indicate only the bulk was sold rather than the entire public holdings. The fund, which saw its assets peak at $45 billion, fell approximately 67% in July, though investor letters suggest it remains up about 80% for the year. Notably, the firm has retained its private investments, including a $5 billion stake in Anthropic, and is seeking to stabilize its position after failing to secure fresh capital through an investor appeal on August 1.
Situational Awareness's fund reportedly fell approximately 67% in July, though an investor letter stated the fund remained up about 80% for the year. While the fund sold the bulk of its stock portfolio to Citadel, it reportedly did not sell its investments in private companies, which include a $5 billion stake in Anthropic. Additionally, although the fund sought fresh capital starting August 1, the appeal failed to secure the hoped-for commitments.
Situational Awareness's fund reportedly fell approximately 67% in July, though an investor letter stated the fund remained up about 80% for the year. While the firm sold the bulk of its public equities portfolio to Citadel, it did not sell its investments in private companies, which include a $5 billion stake in Anthropic and holdings in MatX and Fluidstack. Additionally, the fund's heavy losses in stocks such as SK Hynix, SanDisk, Bloom Energy, and Nebius Group—all of which dropped over 30% this month—preceded the deal.
Situational Awareness's fund reportedly fell approximately 67% in July, although an investor letter stated the fund remains up about 80% for the year. While the fund sold the bulk of its public stock portfolio to Citadel, it did not sell its investments in private companies, such as its $5 billion stake in Anthropic. Additionally, the fund's heavy losses in stocks like SK Hynix, SanDisk, Bloom Energy, and Nebius Group—all of which dropped over 30% this past month—preceded Citadel's intervention, which helped trigger a relief rally in global AI stocks.
While the transaction involves the sale of a large portion of the stock portfolio, some sources claim the entire public equities portfolio was offloaded, though this remains disputed. The deal reportedly follows a period where Situational Awareness's assets under management peaked at $45 billion and its fund fell approximately 67% in July. Notably, the fund did not sell its private company investments, which include a $5 billion stake in Anthropic.
Situational Awareness's fund reportedly fell approximately 67% in July, though an investor letter stated the fund remained up about 80% for the year. While the fund sold its leveraged public holdings to Citadel, it did not sell its investments in private companies, including a stake in Anthropic valued at $5 billion. Additionally, the fund's collapse has been linked to a broader market phenomenon, with BTIG noting that Morgan Stanley's sector-neutral Momentum Index fell 17.4% in just four trading days, marking its worst decline on record.
The fund's July losses reached approximately 67% according to The Wall Street Journal, even though an investor letter claimed the fund remained up about 80% for the year. While Situational Awareness sold its leveraged public holdings to Citadel, the fund reportedly did not sell its private company investments, which include a $5 billion stake in Anthropic. Additionally, although Aschenbrenner sought fresh capital starting August 1 following the selloff, the appeal failed to secure the expected commitments.
While the transaction involving the bulk of the portfolio has been confirmed, some sources suggest the sale potentially involved $16 billion in equity, though reports differ on whether the entire public equities portfolio was offloaded. Situational Awareness reportedly did not sell its private company investments, and the fund's July losses reached approximately 67% despite remaining up about 80% for the year. Additionally, the deal has been linked to a relief rally in global AI stocks.
The fund's total equity portfolio was reportedly offloaded to Citadel in a deal valued at $16 billion, though some sources dispute whether the entire public holdings were sold. While Situational Awareness faced significant losses in stocks like SK Hynix, SanDisk, Bloom Energy, and Nebius Group—all of which dropped over 30% this month—the fund notably retained its private company investments. Additionally, the rescue by Ken Griffin's firm has been credited with triggering a relief rally in global AI stocks.
While the fund's public holdings were sold to Citadel, Situational Awareness did not sell its investments in private companies. The fund, which saw its assets under management peak at $45 billion, reportedly suffered a 67% decline in July despite the investor letter stating it remained up approximately 80% for the year. Additionally, the fund's portfolio included a $5 billion stake in Anthropic, and it had previously withdrawn from a deal to sell $3.5 billion of those shares to a group led by Greenoaks and Sequoia Capital.
Situational Awareness's fund reportedly fell approximately 67% in July, despite an investor letter stating the fund remained up about 80% for the year. The fund's portfolio losses were further amplified by the use of leverage, and while the entity sold its public holdings to Citadel, it did not sell its investments in private companies. Hardest-hit stocks included SK Hynix, SanDisk, Bloom Energy, and Nebius Group, all of which saw declines exceeding 30% over the past month.
Situational Awareness's fund reportedly plunged approximately 67% in July, though an investor letter stated the fund remains up about 80% for the year. While the firm sought fresh capital following heavy losses in AI stocks, the appeal failed to secure the expected commitments. Notably, the fund's selloff included significant hits to holdings such as SK Hynix, SanDisk, Bloom Energy, and Nebius Group, all of which declined by over 30% in the past month.
The fund's July losses reached approximately 67%, even as an investor letter indicated the fund remained up about 80% for the year. While the core transaction involved selling the bulk of its stock portfolio, Situational Awareness reportedly did not sell its investments in private companies, such as MatX and Fluidstack. Additionally, Aschenbrenner had previously attempted to raise fresh capital starting August 1 following the heavy losses in AI stocks, though the appeal failed to secure the desired commitments.
Situational Awareness's fund lost approximately 67% in July, though an investor letter noted the fund remains up about 80% for the year. While the fund offloaded a significant portion of its public equities to Citadel, it did not sell its investments in private companies, which include a $5 billion stake in Anthropic. The fund's portfolio saw heavy hits from stocks like SK Hynix, SanDisk, Bloom Energy, and Nebius Group, all of which declined by over 30% in the last month.
While the specifics of the transaction remain confidential, reports indicate that Situational Awareness's fund fell approximately 67% in July, even though an investor letter stated the fund remains up about 80% for the year. The fund's heavy losses were amplified by leverage, with its hardest-hit positions including SK Hynix, SanDisk, Bloom Energy, and Nebius Group, all of which saw declines exceeding 30% over the past month. Although Aschenbrenner sought fresh capital starting August 1, the appeal failed to secure the hoped-for commitments from investors.
While the scale of the transaction is being debated, some sources claim Citadel acquired a $16 billion equity portfolio from Situational Awareness, although it is disputed whether the entire public equities portfolio was sold. The fund's July losses reached approximately 67%, even as its investor letter claimed the fund remained up about 80% for the year. Additionally, while the company's public holdings, including SK Hynix and SanDisk, faced significant declines, Situational Awareness did not sell its private company investments.
Situational Awareness's fund reportedly fell about 67% in July, though an investor letter noted the fund remained up approximately 80% for the year. While the fund offloaded much of its public equity portfolio to Citadel, it did not sell its investments in private companies, which include stakes in MatX and Fluidstack. Additionally, the fund holds a $5 billion stake in Anthropic, a company expected to go public as early as October.
Situational Awareness's fund plummeted approximately 67% in July, although an investor letter indicated the fund remained up about 80% for the year. While some reports suggest the fund sold its entire public equities portfolio to Citadel, others dispute that all holdings were offloaded, noting that the fund did not sell its private company investments. Additionally, regulatory filings reveal specific concentrated positions in companies like SK Hynix, SanDisk, and Bloom Energy, all of which saw declines exceeding 30% this month.
While Situational Awareness reportedly sold the bulk of its stock portfolio to Citadel, the fund notably did not sell its private company investments, which include a $5 billion stake in Anthropic. The fund's July losses reached approximately 67% following heavy declines in stocks like SK Hynix and SanDisk, though an investor letter claimed the fund remained up about 80% for the year. Additionally, Aschenbrenner, who previously served on the FTX Future Fund team, is identified as a 24-year-old German-born former OpenAI employee.
Situational Awareness's fund reportedly fell about 67% in July, though an investor letter stated the fund remained up approximately 80% for the year. While the fund's public portfolio included holdings in companies such as SK Hynix, SanDisk, Bloom Energy, and Nebius Group, the fund did not sell its investments in private companies. Furthermore, despite the heavy losses in AI stocks, the fund still maintains a stake in Anthropic valued at $5 billion.
Situational Awareness's assets under management plummeted from a peak of $45 billion in early July to approximately $10 billion following the deal, which included selling the bulk of its public holdings to Citadel while retaining private investments such as Anthropic. The fund's value fell by about 67% in July, though an investor letter noted the fund remained up roughly 80% for the year. Additionally, the transaction was facilitated by major prime brokers including Goldman Sachs, JPMorgan Chase, Bank of America, and Citigroup.
Situational Awareness's assets under management plummeted to approximately $10 billion following the deal, down from a peak of $45 billion in early July. The fund's July losses reached roughly 67%, though an investor letter noted the fund remains up about 80% for the year. Following the sale of its public holdings, the fund retained a $10 billion book consisting of private investments such as Anthropic, MatX, and Fluidstack.
Situational Awareness's assets under management plummeted to approximately $10 billion following the deal, down from a peak of $45 billion in early July. While the fund's value fell about 67% in July, an investor letter indicated the fund remained up roughly 80% for the year. The company retained certain private investments, including a $5 billion stake in Anthropic, as well as holdings in MatX and Fluidstack.
