Hedge fund Situational Awareness, founded in 2024 by former OpenAI researcher Leopold Aschenbrenner, is urgently seeking capital from existing investors after losing approximately $600 million in a single session in July and roughly 50 % on several key positions over the course of the month. The fund, valued at $20 billion, had posted net returns of 439 % in the first half of 2026, driven by an investment thesis centered on NAND storage, on-site power generation and the conversion of former Bitcoin miners into GPU hosting providers for AI cloud infrastructure. The simultaneous correction of these three pillars, amplified by the fund’s use of leverage, caused brutal declines in its positions, with losses reaching up to 55 % on SanDisk and 52 % on Sharon AI. Aschenbrenner is now counting on catalysts in the second half of 2026, notably a possible IPO of Anthropic, to turn things around.
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