Jane Street suffered a $15 billion loss in July due to its exposure to AI-focused hedge fund Situational Awareness and other tech stocks battered by the market selloff. Leopold Aschenbrenner, a former OpenAI researcher who runs Situational, conducted a fire sale of most of his portfolio to Ken Griffin’s Citadel after the AI selloff triggered margin calls. Despite this setback, Jane Street has generated more than $40 billion in trading revenue year to date, easily outpacing the largest banks and other market-making rivals. The firm was also hurt by its long positions in non-AI Asian stocks, with several of the largest memory and semiconductor stocks down around 50% in July.
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