Leopold Aschenbrenner's AI Hedge Fund Survives Crisis Ahead of Wedding
Leopold Aschenbrenner, founder of the $45 billion hedge fund Situational Awareness and known as the 'Nostradamus of AI,' is set to marry Avital Balwit in Carmel, California. The wedding follows a week-long financial crisis for his firm after memory chip stocks like SK Hynix plummeted by 30%, triggering margin calls due to Aschenbrenner's leveraged bets. As traders shorted the positions and prices dropped further, banks demanded more collateral, forcing him to sell assets. Citadel ultimately stepped in with a deal that allowed Aschenbrenner to buy back his portfolio at a discount and pay off lenders, saving the fund from collapse. The firm survived but was reduced to $10 billion, down 67% for the month though still up 80% year-to-date. Aschenbrenner has taken full responsibility in letters to investors while preparing for his wedding weekend. His backers and colleagues are expected at the event, highlighting connections within Silicon Valley's AI ecosystem.
Topics: AI hedge funds leverage memory chips securities markets