Situational Awareness, an AI-focused hedge fund founded by former OpenAI employee Leopold Aschenbrenner, reportedly sold most or all of its public stock portfolio to Citadel after sharp losses in AI-related shares. The episode matters because it illustrates the financial risks of concentrated bets on a rapidly changing AI market, particularly when valuations and investor expectations are volatile.

CNBC reported that the fund’s value fell from about $45 billion at the start of July to roughly $10 billion following the asset sale, although accounts differed on the exact scale of the disposal. Its major holdings included Nebius Group, Sandisk, Micron and CoreWeave, each of which had fallen by more than 35% during the month; the fund had eight staff, including four investment professionals.