AI hedge fund Situational Awareness may have sold its public portfolio, but it still has its Anthropic shares

The hedge fund founded by former OpenAI researcher Leopold Aschenbrenner is rapidly unwinding many of its public stock positions after suffering steep losses tied to artificial intelligence investments and bearish bets against software companies.

It recently reported around $20 billion in assets under management.

An ex-researcher at OpenAI, who departed there in a cloud of controversy and then wrote a viral essay predicting an artificial intelligence revolution, Mr. Aschenbrenner had started his fund, Situational Awareness, in 2024 at age 22 with a burst of attention.

In July alone, Situational Awareness, which bet heavily on the AI supply chain, reportedly saw its portfolio value plummet 67 per cent