Former OpenAI Researcher Reinvests in AI-Related Stocks Despite Previous Losses
Leopold Aschenbrenner, a former OpenAI researcher turned hedge fund manager, is once again investing in companies tied to the artificial intelligence (AI) boom. His firm Situational Awareness recently purchased call options on AMD, Bloom Energy, CoreWeave, SK Hynix, and SanDisk after suffering a $35 billion loss earlier this year due to leveraged AI-related bets gone wrong. Aschenbrenner had previously gained attention for predicting that AI could reach human-level intelligence by 2027. His July losses were exacerbated by borrowed money triggering margin calls when share prices dropped, reducing his fund's assets from over $45 billion to around $10 billion. Citadel later acquired distressed holdings at a discount. The SEC has also subpoenaed Wall Street banks regarding their dealings with the fund, though no wrongdoing was alleged. Aschenbrenner’s new strategy involves call options that limit potential losses but still carry significant risk if stock prices fail to rise before expiration.
Tickers: $AMD $CRWV $SKHYV $SNDK $WDC