Citadel Takes Over Large Portion of Situational Awareness Portfolio After AI‑Driven Losses

Leopold Aschenbrenner, a 22‑year‑old former OpenAI researcher, founded the hedge fund Situational Awareness in 2024, raising $100 million and borrowing tens of billions to back AI‑related investments. After early strong returns, a sharp decline in AI stock prices in July led Goldman Sachs, one of its major lenders, to demand repayment of loans. Lacking cash, the fund attempted a rapid liquidation of roughly $20 billion of assets, offering large, risky bets against companies such as Adobe. Citadel, led by Kenneth Griffin, stepped in and bought much of the portfolio at reduced prices, a move likened to the 2021 Archegos collapse where leveraged bets left banks exposed.