Citadel Securities acquired Situational Awareness LP’s public equity portfolio for $10 billion. The hedge fund, founded by former OpenAI researcher Leopold Aschenbrenner, had grown to $45 billion in assets under management before falling to over $20 billion due to declining AI-related stocks. Facing margin calls on highly leveraged positions, the fund was forced to sell its public equity portfolio, which included Core Scientific and Iris Energy, two Bitcoin miners that had pivoted toward high-performance computing for AI. Citadel Securities purchased the debt-financed portion of the portfolio, giving it control over a collection of AI infrastructure stocks at significantly depressed valuations.
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