Situational Awareness, a $24 billion hedge fund founded by Leopold Aschenbrenner, is reportedly unwinding many of its trades after suffering major losses in artificial intelligence stocks and a failed bet against software stocks.
The fund's prime brokers, including Bank of America, Goldman Sachs, and JPMorgan Chase, are working to help the fund meet margin requirements, which has led to efforts to sell both long and short positions. The fund's significant holdings, such as SK Hynix, Nebius Group, Sandisk, Micron, and CoreWeave, have all seen declines of over 35% this month.
Aschenbrenner, who gained attention for his views on the need for expanded computing power due to AI advancements, is now facing a critical test of his investment thesis. The situation remains fluid, with ongoing negotiations regarding the sale of assets, including a stake in Anthropic, although the firm has denied reports of actively marketing that stake.
The extent of the fund's losses and the total amount it seeks to raise are still unclear