Leopold Aschenbrenner’s AI Hedge Fund Sells Assets to Citadel

Leopold Aschenbrenner Situational Awareness Citadel margin call AI hedge fund

Former OpenAI researcher Leopold Aschenbrenner founded the AI‑focused hedge fund Situational Awareness, which grew to about $45 billion in assets and posted returns of 439 % year‑to‑date and 1,551 % since its 2024 launch. A sharp correction in AI‑related and semiconductor stocks in July triggered margin calls on the fund’s heavily leveraged positions (up to 400 % leverage). To meet the calls, Aschenbrenner was forced to liquidate most of the fund’s public equity holdings, selling them at a discount to Ken Griffin’s Citadel. The sale reduced the fund’s assets to roughly $10 billion. In a letter to investors Aschenbrenner wrote, “We let you down this month,” but said the fund was not being closed and that it retained its stake in Anthropic. The rapid collapse highlights the volatility of the AI investment boom and the risks of high‑leverage strategies on Wall Street.

Entities: AI hedge fund sector · Anthropic · Citadel · Ken Griffin · Leopold Aschenbrenner · SK Hynix · Situational Awareness

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 5 SOURCES] Leopold Aschenbrenner founded the hedge fund Situational Awareness in 2024. (all articles)
[● 2 SOURCES] Situational Awareness invested heavily in AI infrastructure and semiconductor companies such as Broadcom, Intel, CoreWeave, SK Hynix and Anthropic. (fund filings, media reports)
[● 2 SOURCES] The fund posted a 439 % return from early 2026 to June 2026. (fund letter, media reports)
[● 3 SOURCES] The fund sold the majority of its public‑equity holdings to Citadel for a discounted package. (fund letter, media reports)
[○ 1 SOURCE] After the sale the fund’s assets fell from roughly $45 billion to about $10 billion. (Reuters, fund filings)
[● 2 SOURCES] In July 2026 a sharp decline in AI and semiconductor stocks triggered margin calls for the fund. (media reports)
[● 3 SOURCES] Situational Awareness grew to about $45 billion in assets at its peak in mid‑2026. (Reuters, Wall Street Journal, CNBC)
[● 2 SOURCES] Leopold Aschenbrenner wrote to investors confirming the sale and stating the fund was not liquidated and his own capital remains invested. (investor letter)