Hedge fund Situational Awareness, founded by former OpenAI collaborator Leopold Aschenbrenner, has committed $400 million to Source Foundry, a young company specializing in chip manufacturing tools optimized for artificial intelligence workloads. This investment brings the fund’s total stake in the startup to $500 million, with Source Foundry valued at $5 billion despite its founding in July 2025. The fund went through a difficult period in July 2026, with assets under management plummeting from $45 billion to $10 billion, forcing it to sell its entire public equity portfolio to Citadel to stay afloat. Founded by two Stanford alumni, the company does not manufacture semiconductors but develops tools and manufacturing processes upstream of production, specifically redesigned for AI workloads.
Source: Read the original article
