Situational Awareness Hedge Fund Sells Public Portfolio Amid AI Infrastructure Decline
Situational Awareness, a hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, has reportedly sold the majority of its public stock portfolio to Citadel following significant losses in recent weeks. The firm had previously seen strong returns and grew assets under management up to $45 billion before experiencing sharp declines due to falling AI infrastructure equities like SK Hynix, Sandisk, Bloom Energy, and Nebius Group. Despite the selloff, Aschenbrenner remained optimistic in a letter to investors, calling it one of the best buying opportunities since early 2025. However, his appeal for fresh capital commitments did not yield expected results. Citadel's acquisition reduced Situational Awareness' assets from around $20 billion to roughly $10 billion. The fund retained its stake in private AI company Anthropic, valued at approximately $5 billion by Bloomberg. Anthropic is anticipated to go public as soon as October and was last valued at $965 billion following a Series H funding round.