Hedge fund Situational Awareness LP, founded by former OpenAI employee Leopold Aschenbrenner, has seen its assets under management plummet from roughly $20 billion to $10 billion after being forced to liquidate the bulk of its public equity portfolio to Citadel to meet margin calls. The fund, which was betting aggressively on AI infrastructure, data centers, and Bitcoin miners with leverage up to 4x, saw its positions unravel during the sector correction in July 2026. Launched in late 2024 with $225 million in seed capital, the fund had grown to over $20 billion in AUM by mid-2026 with reported net returns approaching 439%. The fund retains a private stake of approximately $5 billion in Anthropic, OpenAI’s main rival, which now represents nearly half of its remaining assets.
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