The man who wrote the AI-boom bible just got margin-called out of it
The man who wrote the defining case for the AI boom just got wiped out betting on it. Situational Awareness, the hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, has been forced to sell off its portfolio of public stocks after steep losses. Ken Griffin’s Citadel has bought the lot.
The collapse was first reported by CNBC’s David Faber. The fund’s prime brokers had been scrambling to raise cash to meet margin calls, he said. The whole public book went in one enormous trade. Roughly two-thirds of the fund’s assets were public equities, held long and shorted. The Wall Street Journal reported that the rival firm Millennium had also bid for the book.
The trade that broke
The fund made one big, leveraged bet: that the AI build-out would keep lifting the companies supplying its chips, memory and power. That trade turned hard. Its positions in memory...
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