Situational Awareness fund faces new losses in AI stock comeback

Leopold Aschenbrenner, the former OpenAI researcher running the Situational Awareness hedge fund, has faced renewed losses following a recent attempt to re-enter the AI and tech markets. After a major collapse in July that erased billions in assets, the fund reportedly purchased options tied to several companies between September 2 and September 10, including AMD, Bloom Energy, CoreWeave, SK Hynix, SanDisk, and the Roundhill Memory ETF.

By Monday’s market open, all six of these tickers had declined by 5% to 8%. The decline was not attributed to Aschenbrenner’s specific trades, but rather to a broader AI-related sell-off. This market movement was triggered by a viral essay from Anthropic CEO Dario Amodei, who suggested AI could take over the internet within 6 to 12 months—a sentiment echoed by figures such as Elon Musk and Sam Altman. Analysts have characterized the downturn as a rotation out of crowded AI trades.