Leopold Aschenbrenner, the 25-year-old former OpenAI researcher, is unwinding many trades in his hedge fund Situational Awareness after large losses on AI stocks and a failed bet against software stocks, according to sources familiar with the matter. The fund, which manages $24 billion, has experienced significant losses in recent weeks.
$24 billion
Assets under management of Situational Awareness, run by Leopold Aschenbrenner.
Prime brokers including Bank of America, Goldman Sachs, and JPMorgan Chase are working with the fund to meet margin requirements or reduce positions. Brokers have been marketing some of the fund's holdings on both the long and short side for sale prior to the start of trading.
The fund is attempting to raise liquidity by marketing stakes in privately held companies, including an investment in Anthropic. Prospective buyers have expressed interest in purchasing part or all of the Anthropic stake.
At the end of the first quarter, the fund's largest holdings included Nebius Group, Sandisk, Micron, and CoreWeave. All four are down more than 35% this month. The portfolio also includes long positions in AI infrastructure stocks like SK Hynix and short positions in software stocks like Adobe.
Reports vary on the extent of the sell-off. Some sources indicate the fund is being forced to sell its entire portfolio after a rout, while others describe a more measured unwinding of trades and marketing of assets. The size of the losses, the amount being raised, and the extent of asset sales could not be independently confirmed. One report claims a $1 billion liquidation, but this is disputed.
Aschenbrenner, who graduated from Columbia University as valedictorian at age 19, later joined OpenAI's Superalignment team. He was fired in 2024 over what OpenAI described as an improper disclosure of internal information. Aschenbrenner disputes this, saying he shared a largely nonconfidential planning document.
He published a series of essays in 2024 arguing that AI progress will require enormous expansion of computing power, semiconductors, memory, and energy infrastructure. Aschenbrenner is engaged to Avital Balwit, chief of staff for Anthropic CEO Dario Amodei, according to a Fortune profile citing a Situational Awareness LP spokesperson.
Updates
The fund is reportedly liquidating a $1 billion AI infrastructure portfolio, causing shares of companies like IREN and Core Scientific to surge. It remains unclear whether the current margin calls are being met through negotiated asset sales or a broader portfolio liquidation. Additionally, reports indicate the fund is currently offering a stake in Anthropic for sale, while the specific size of this holding has not yet been determined.
Situational Awareness has reportedly begun liquidating a $1 billion AI infrastructure portfolio, causing shares in companies such as IREN and Core Scientific to surge. While it remains unclear whether the fund is settling margin calls through specific asset sales or a broader liquidation, reports indicate that manager Leopold Aschenbrenner recently contacted Ken Griffin regarding the firm's financial position. Additionally, there are conflicting reports regarding the fund's size, with new claims suggesting it manages $20 billion rather than the previously reported $24 billion.
The fund is reportedly liquidating a $1 billion AI infrastructure portfolio, causing a surge in shares for companies such as IREN and Core Scientific. While the firm struggles to raise cash, it has also begun offering a stake in Anthropic for sale. Additionally, reports indicate Leopold Aschenbrenner's fund size may be $20 billion, differing from the $24 billion previously cited, though this figure remains disputed.
The fund is reportedly liquidating a $1 billion AI infrastructure portfolio, causing shares of companies such as IREN and Core Scientific to surge. While it remains unclear if the fund is fulfilling margin calls through negotiated sales or a broader liquidation, the firm is actively scrambling for cash. Additionally, reports indicate the fund is attempting to sell its stake in Anthropic, though the size of that holding remains undetermined.
Situational Awareness is reportedly liquidating a $1 billion AI infrastructure portfolio, causing shares of companies like IREN and Core Scientific to surge. The fund is also offering an undisclosed stake in Anthropic for sale. While the exact scale of the fund's assets is disputed, reports indicate Leopold Aschenbrenner reached out to Ken Griffin as the firm scrambled to raise cash.
The fund has reportedly liquidated a $1 billion AI infrastructure portfolio, causing a surge in shares for companies such as IREN and Core Scientific. While it remains unclear if the firm is pursuing negotiated asset sales or a broader liquidation, the fund is also actively offering a stake in Anthropic. Additionally, reports indicate the fund's size is $20 billion, conflicting with previous figures, and its recent financial distress led manager Leopold Aschenbrenner to contact Ken Griffin.
While it remains unclear whether the fund is negotiating specific asset sales or undergoing a broader liquidation to meet margin calls, shares of IREN and Core Scientific have surged following reports that Situational Awareness is liquidating a $1 billion AI infrastructure portfolio. Additionally, the size of the stake in Anthropic being offered by the fund could not be determined, and there are conflicting reports regarding the total assets under management, with some sources citing $20 billion instead of $24 billion.
Situational Awareness's fund holdings plunged to around $10 billion by Thursday after being forced to offload leveraged stock bets to Ken Griffin's Citadel at a discount, having reached a peak of $45 billion in assets earlier this month. Reports suggest the fund utilized as much as 400% leverage and that the liquidation of a $1 billion AI infrastructure portfolio caused shares of IREN and Core Scientific to surge. Additionally, while the fund reportedly fell 67% in July, it had previously achieved gains exceeding 1,000% since its inception.
Situational Awareness's fund holdings reportedly plunged to approximately $10 billion by Thursday after the firm was forced to offload leveraged stock bets to Ken Griffin's Citadel at a discount. This follows a period where the fund's assets peaked at $45 billion earlier this month, and current reports suggest the fund utilized as much as 400% leverage. While the fund's July decline is verified at 67%, some reports dispute the total fund size, placing it at $20 billion rather than the previously cited $24 billion.
Situational Awareness's fund holdings plunged to around $10 billion by Thursday after being forced to offload leveraged stock bets to Ken Griffin's Citadel at a discount, moving away from its $45 billion peak earlier this month. While the fund reportedly used as much as 400% leverage, the specific method of satisfying margin calls remains unconfirmed. Additionally, although some reports suggest the fund manages $20 billion, the scale of its recent losses includes a 67% decline in July.
