Leopold Aschenbrenner, a former OpenAI researcher, saw his fund Situational Awareness achieve a 439% net gain in the first half of 2024 by betting on AI infrastructure stocks. The correction in AI values since late July triggered margin calls that the fund, leveraged up to 4 times, could not meet, forcing Goldman Sachs, JPMorgan Chase and Bank of America to organize the sale of the entire portfolio. All long and short positions were sold in a single transaction to Citadel, Ken Griffin’s fund, for an undisclosed amount. SK Hynix, representing about 6.5% of the public portfolio, had reached a net asset value of $45 billion on July 1 before declining. Despite this forced sale, Aschenbrenner is nonetheless inviting investors to reinvest capital starting August 1, viewing the correction as one of the best buying opportunities since early 2025.
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