AI hedge fund Situational Awareness sells stock but keeps Anthropic shares
25-year-old Leopold Aschenbrenner's $45B AI fund crashes—then bet big on Anthropic's $965B valuation
Situational Awareness, a hedge fund launched in 2024 by Leopold Aschenbrenner—former OpenAI superalignment researcher dismissed in 2024 over a disclosure dispute—has sold the majority of its public stock portfolio to Citadel following steep losses. The fund, which gained 439% in the year through June, saw assets under management peak at $45 billion before plummeting amid a sector-wide selloff in AI infrastructure stocks like SK Hynix (-30%), Sandisk (-30%), and Bloom Energy (-30%). Losses were amplified by leverage, a common hedge fund strategy.
Despite the rout, Situational Awareness retained its private investments, including a $5 billion stake in Anthropic, valued at $965 billion after its May Series H round. Anthropic is expected to go public as soon as October, potentially at an even higher valuation. The fund’s remaining assets now total roughly $10 billion, down from $20 billion in recent months. Citadel, which has a history of buying undervalued assets during market downturns, acquired the bulk of the liquidated positions, aligning with its existing AI infrastructure bets.
- Situational Awareness lost 30% in public AI infrastructure stocks (SK Hynix, Sandisk, Bloom Energy) but retained $5B in Anthropic shares
- Assets dropped from $45B to $10B after leveraged positions unwound, with Citadel acquiring most public holdings
- Anthropic’s $965B valuation and impending IPO could offset losses, while private bets like MatX and Fluidstack remain in play
Why It Matters
A cautionary tale of AI hype vs. execution—shows how quickly hedge fund strategies can unravel when leverage meets sector volatility.