Ken Griffin\u2019s Citadel reportedly bought a large proportion of the public stock portfolio of Situational Awareness, the hedge fund founded by former OpenAI researcher Leopold Aschenbrenner.<\/p>\n
The Financial Times first reported<\/a> Thursday that Citadel bought the portfolio holdings after heavy losses during July\u2019s artificial intelligence stock market rout<\/a>.\u00a0<\/p>\n The transaction followed Aschenbrenner\u2019s fund falling about 67% in July, according<\/a> to The Wall Street Journal, citing a person who saw a letter sent to investors. The letter said the fund remained up about 80% for the year. The Financial Times previously reported the fund was up 439% through June<\/a>.<\/p>\n Those reports suggested Situational had approached existing investors and lenders for fresh capital and offered some investors the option to buy portfolio assets. The Journal also reported<\/a> Situational needed cash to meet margin calls from its lenders and that the fund agreed late Wednesday to sell $3.5 billion of Anthropic shares to a group led by Greenoaks and Sequoia Capital before withdrawing from the deal Thursday morning.<\/p>\n Reuters separately reported<\/a> the leveraged portfolio detail but said it could not determine whether formal margin calls had been issued before the sale. Reuters said Situational retained roughly $10 billion in stocks and private investments, including Anthropic. Situational had grown to about $24 billion in assets in under two years before the reversal, according to the FT\u2019s follow-up profile<\/a>.<\/p>\n Several stocks linked to the fund suffered sharp declines in July. Sandisk<\/a> remained down about 44% for the month even after closing Thursday up 26%. CoreWeave<\/a> fell nearly 26% in July, while Bloom Energy<\/a> was down around 32%, Yahoo Finance data shows.<\/p>\n Related: <\/strong><\/em>Former OpenAI researcher foresees AGI reality in 2027<\/strong><\/em><\/a><\/p>\n Situational\u2019s US Securities and Exchange Commission filing showed<\/a> direct share positions in all three companies as of March 31.<\/p>\n The same filing showed about $1.11 billion in shares of seven Bitcoin (BTC) mining companies, including Iren, Core Scientific, Riot Platforms and CleanSpark. Cointelegraph previously reported that the positions gave Situational exposure to miners expanding into AI<\/a> and high-performance computing by repurposing their power supplies and data center sites.<\/p>\n It remains unclear what stocks were part of the transaction between Citadel and Situational or whether the fund retained any of its Bitcoin miner positions.<\/p>\n Related:<\/strong><\/em> Bitcoin miner Core Scientific shifts to AI with 1.5GW data center push<\/strong><\/em><\/a><\/p>\n Aschenbrenner\u2019s fund takes its name from his 2024 essay series<\/a>, \u201cSituational Awareness: The Decade Ahead,\u201d which argued that artificial general intelligence could arrive by 2027 and drive enormous demand for computing power and electricity.<\/p>\n Before joining OpenAI, Aschenbrenner was a member of the FTX Future Fund\u2019s five-person team and signed its November 2022 resignation notice<\/a> as FTX collapsed.<\/p>\n Cointelegraph contacted Situational Awareness and Citadel for comment but had not received a response by publication.<\/p>\n Magazine: <\/strong><\/em>The 100x obsession: Fundamentals grow in importance as crypto matures<\/strong><\/em><\/a><\/p>\n Related:<\/strong> Bitcoin price<\/a> \u00b7 BTC live chart<\/a> \u00b7 Ethereum price<\/a> \u00b7 ETH gas fee<\/a> \u00b7 Bitcoin price today<\/a> \u00b7 Top 10 cryptocurrencies<\/a><\/p>\nAI holdings suffered steep July falls<\/strong><\/h2>\n