Leopold Aschenbrenner’s AI-focused hedge fund, Situational Awareness, is reportedly unwinding trades after sharp losses in AI-related investments, just days before his wedding. The episode highlights the risks of concentrated, highly leveraged bets in a volatile sector that has attracted intense investor enthusiasm.

The fund had reportedly grown to about $45 billion at its peak after exceptionally strong returns, but losses in AI infrastructure shares and a bet against software stocks forced it to seek cash and sell assets. Aschenbrenner, a former OpenAI researcher, founded the fund after leaving the company in 2024; reports said it was still up for the year despite the recent setback.