The AI-focused hedge fund secures fresh capital following a 78% July asset plunge amid margin calls and sector sell-off.
Situational Awareness, the hedge fund founded by ex-OpenAI researcher Leopold Aschenbrenner, invested $400 million in an undisclosed private company this week. The move follows a near-collapse in July after a 78% drop in assets triggered margin calls from Wall Street lenders during an AI stock sell-off.
The fund had previously invested $100 million in the same company in July. It sold most of its public equity portfolio to Citadel to repay lenders while retaining private holdings. As of March 31, the fund held $1.11 billion in Bitcoin mining stocks linked to AI infrastructure.
The latest investment suggests stabilization after the fund sought emergency capital and considered selling private stakes to meet obligations.