Situational Awareness, the hedge fund founded in 2024 by ex-OpenAI researcher Leopold Aschenbrenner, has approached investors and lenders for fresh capital after July's AI stock sell-off amplified losses tied to borrowed money, the Financial Times reported. The fund holds about $1.11 billion across seven Bitcoin miner stocks and has also offered some investors the option to buy portfolio assets.
Situational Awareness has approached investors and lenders for fresh capital after July's artificial intelligence stock sell-off amplified losses tied to borrowed money, the Financial Times reported Thursday. The hedge fund, founded in 2024 by former OpenAI researcher Leopold Aschenbrenner, has also offered some investors the option to buy portfolio assets, according to the FT, which cited people briefed on the discussions and a July 24 investor letter.
The size of the losses and the amount of capital sought were not disclosed. But Aschenbrenner's fund had gained 439% after fees through June, according to the letter, and the FT said borrowing increased the size of its bets, driving up losses when AI stocks collapsed during July's market rout. Aschenbrenner reportedly argued in the letter that the sell-off had created attractive investment opportunities.
Bitcoin Miner Bets Anchor the Portfolio
Cointelegraph previously reported that the fund had built a position around the power and data centers supporting AI, including Bitcoin miners pivoting into AI computing. A filing with the US Securities and Exchange Commission in March showed about $1.11 billion in positions across seven Bitcoin miner stocks, including IREN, Core Scientific, Riot Platforms and CleanSpark. The fund had around $20 billion in assets under management as of June 8, the Wall Street Journal said.
AGI Essays Preceded the Fund's 2024 Launch
Aschenbrenner wrote a series of essays on artificial general intelligence in mid-2024, around the same time he launched Situational Awareness. In them, he predicted that AGI machines will outpace college graduates by the end of the decade. Cointelegraph contacted Situational Awareness for comment but had not received a response by publication.
Source: Cointelegraph.com News
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