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AI Fund Meltdown: Founder Saves Key AI Stakes
30 Jul
Summary
- Situational Awareness sold most public equities to Citadel.
- The fund retained its private portfolio, including Anthropic.
- Margin calls forced the sale of levered public positions.
Leopold Aschenbrenner, the 25-year-old founder of Situational Awareness, has navigated a significant financial downturn. The artificial-intelligence-focused investment firm was compelled to sell a majority of its public equity holdings to Ken Griffin's Citadel on Wednesday. This development followed earlier reports of the once-$20 billion fund's rapid unwind.
Crucially, Situational Awareness managed to retain its private portfolio of AI companies. This includes a significant investment in Anthropic, a leading AI firm expected to go public soon and recently valued at $965 billion. The forced sale of public equities, which included substantial positions in AI hardware stocks like Nebius and Sandisk, was attributed to margin calls on levered positions that had declined in value.
Despite the humbling circumstances, a person close to the fund indicated that Aschenbrenner intends to continue trading public equities with a small portion of the firm's book. The fund, previously a focus for retail traders, will now predominantly concentrate on private companies, with Anthropic representing the crown jewel of its portfolio.
