Late July saw a dramatic shift as Leopold Aschenbrenner’s AI-focused hedge fund, Situational Awareness LP, was forced to sell $16 billion worth of tech stocks after major banks demanded more collateral.
The fund, once valued at about $45 billion earlier this year, faced margin calls from Bank of America, Goldman Sachs, and JPMorgan. Selling off its public equity holdings became the only option to avoid collapse.
Positions in semiconductor firms like SK Hynix and Micron took a heavy hit amid a selloff in AI infrastructure stocks. At the same time, short bets on software companies moved against the fund, deepening the losses.
Citadel emerged as the buyer, scooping up the fire-sale portfolio. Among the stakes transferred were shares in Bitcoin mining companies such as Riot Platforms and CleanSpark, reflecting the fund’s thesis that AI computing and crypto mining share infrastructural synergies. This liquidation likely added pressure on the Bitcoin mining sector during a turbulent period.
Despite the turmoil, Aschenbrenner held onto private assets including a stake in Anthropic, shifting the fund’s focus sharply toward private equity. This retreat from public markets shows the challenges new AI-focused hedge funds face in volatile conditions.
