Leopold Aschenbrenner's AI Fund Plunges $35 Billion

Leopold Aschenbrenner's AI-themed hedge fund, Situational Awareness, saw its assets plunge from $45 billion to about $10 billion this week. This dramatic fall followed tumbling semiconductor stocks and Wall Street margin calls. Aschenbrenner, a former OpenAI researcher, launched the fund in July 2024. At its peak earlier this month, the fund held $45 billion in assets. However, he was forced to sell leveraged stock bets to Ken Griffin's Citadel at a discount. Before this decline, Situational Awareness had gained over 1,000% since its inception. Critics noted Aschenbrenner, 24, had no prior experience running money. Some reports indicate the fund used as much as 400% leverage. This event highlights the volatility within the AI boom.