AI Stock Master Falls Before Dawn? Fund Sells off All Publicly Listed Stock Assets, Initiates Gradual Liquidation

BlockBeats News, July 30th, according to CNBC, Situational Awareness, an AI-themed hedge fund founded by 25-year-old Wall Street rising star and former OpenAI researcher Leopold Aschenbrenner, suffered massive losses due to a wrong investment judgment on software stocks. The fund has currently liquidated all publicly traded equity assets. The fund has paused some trading activities and had to urgently raise funds to deal with the crisis.

According to sources familiar with the matter, some key brokers of the institution—including Bank of America, Goldman Sachs, and JPMorgan Chase, among other financial institutions—have been assisting the fund in meeting leverage requirements or orderly reducing positions. Insiders also revealed that these brokers had already spread some of the fund's assets in long and short positions before the trading started for a smoother sell-off.

The future of Situational Awareness Fund remains uncertain. It is currently unclear whether the fund will meet profit requirements through negotiated asset sales or undergo a comprehensive asset liquidation. The fund is also attempting to increase liquidity by selling its stakes in private companies, including a prior investment in Anthropic. However, the exact number of shares offered is currently unknown, but potential buyers have already expressed interest in purchasing some or all of the shares.

Documents show that Situational Awareness Fund's largest holdings at the end of the first quarter included Nebius, SanDisk, Micron, and CoreWeave, all of which have seen their stock prices drop by over 35% this month. Established in 2024, the investment thesis was based on Aschenbrenner's belief in the imminent arrival of AGI. At one point, the fund reached a size of around $20 billion, with a net return as high as 439% as of June 2026, making it one of the most prominent star funds in this AI bull market cycle. Its holdings mainly covered major AI infrastructure and compute chain-related companies, leveraging positions for amplified exposure.