AI Hedge Fund Implodes: $45 Billion Wiped Out in Days as Leverage Backfires
A highly leveraged AI hedge fund, Situational Awareness, has been forced to sell off nearly its entire stock portfolio after suffering massive losses, despite its founder's correct thesis on AI growth. The fund's collapse has significant implications for the AI industry and its investors.
Leopold Aschenbrenner's AI hedge fund Situational Awareness had to unload nearly its entire publicly traded portfolio to Ken Griffin's Citadel after racking up heavy losses on leveraged AI stock positions. Just days earlier, Aschenbrenner had reported a six-month return of 439 percent and pulled in fresh capital. Then margin calls forced the fire sale. The article Aschenbrenner's AI thesis could be correct, his timing and leverage were not appeared first on The Decoder.