Aschenbrenner's AI Fund Losses Resume After Brief Comeback Attempt
Situational Awareness Fund Re-enters AI Market
Leopold Aschenbrenner's hedge fund Situational Awareness has started buying AI stocks and options again, just six weeks after a major collapse. The fund purchased options tied to companies like AMD, Bloom Energy, and CoreWeave between September 2 and September 10. By the next Monday, these stocks had already fallen between 5% and 8%.
Key Facts from the Report
- The fund bought options on six AI-related stocks and ETFs, including AMD, Bloom Energy, CoreWeave, SK Hynix, SanDisk, and the Roundhill Memory ETF.
- CNBC reported these purchases on Friday, September 11, 2026.
- On Monday, September 14, all six positions were down 5% to 8%.
- This followed a July collapse where the fund lost billions of dollars in assets.
Background on the July Blow-Up
Aschenbrenner launched Situational Awareness in 2024 with about $225 million. Backers included Stripe co-founders and other investors. Using leverage up to 400%, the fund grew to over $45 billion by early July 2026. Then, a retracement in AI stock prices forced margin calls and a fire sale. Ken Griffin's Citadel bought most of the portfolio at a discount, and JPMorgan Chase cut off financing. Aschenbrenner moved to Clear Street as a prime broker.
What Caused Monday's Sell-Off
The drop in AI stocks was not directly because of Aschenbrenner's trades. It followed a viral essay by Anthropic CEO Dario Amodei, who suggested pacing AI advancements. Elon Musk and Sam Altman supported the idea, and market analysts described it as a rotation out of crowded AI trades.
Confirmed Information
Based on the sources, the following facts are confirmed: Situational Awareness bought options on the specified stocks between September 2-10. The stocks fell 5-8% on Monday. The fund previously collapsed in July, losing most of its assets. Citadel acquired the portfolio, and JPMorgan stopped lending. The fund is now using flex options, which are contracts that limit losses to the premium paid.
Significance for AI and Hedge Funds
This event highlights the risks of high-leverage trading in volatile AI markets. Despite a previous historic loss, the fund attempted a comeback, only to face immediate downturns. It shows how market sentiment can shift quickly, especially with influential figures commenting on AI development.
