Exclusive | Citadel Buys Situational Awareness’s Stock Portfolio After Big Losses in AI

AI-focused hedge fund Situational Awareness sold most of its public stock portfolio financed with borrowed money to Citadel after steep losses and margin-call pressure. The fund, led by former OpenAI employee Leopold Aschenbrenner, had grown rapidly to more than $20 billion in assets but was hit as AI-related stocks declined over concerns about capital spending and borrowing costs. Situational retained the portion of its portfolio funded by client capital, according to people familiar with the matter.

Summary generated July 30, 2026. AI summaries can make mistakes.