The AI-focused hedge fund increases its stake in the Stanford-backed chipmaker to $500 million despite recent losses and asset sales.
Embattled hedge fund Situational Awareness has invested an additional $400 million in Source Foundry, a chip manufacturing startup founded by Stanford researchers. The move raises its total commitment to the company to $500 million, signaling confidence in the startup’s technology to accelerate and reduce costs in chip production.
The fund, led by former OpenAI researcher Leopold Aschenbrenner, recently faced significant losses, with assets under management dropping from $20 billion to $10 billion. Last month, it sold off most of its public portfolio to Citadel but retained its Anthropic shares. Early returns were strong, but recent declines in AI infrastructure stocks hurt performance.
Despite setbacks, the fund continues to bet heavily on AI-related ventures, including this latest investment in Source Foundry.