Leopold Aschenbrenner, a former OpenAI researcher renowned for his investment acumen, is reportedly scaling back positions in his hedge fund, Situational Awareness. This comes after the fund faced severe losses tied to artificial intelligence bets and shorts on software companies, according to a CNBC report published on July 30.
The fund’s assets peaked around $45 billion in early July but recent volatility forced a partial unwinding of holdings. Financial Times noted that Aschenbrenner sought new capital from existing investors and lenders, with some parties offered the chance to buy portfolio assets directly.
Among the hardest-hit stocks were Nebius Group, Micron Technology, SanDisk, and CoreWeave, all linked to the AI and semiconductor sectors. Despite the downturn, specific loss amounts remain undisclosed, and it is unclear whether fresh funding has been secured.
Ongoing Confidence in AI Despite Setback
Situational Awareness had delivered an impressive 439% net return through June 2026, just before this month’s AI-driven selloff. Yet, the fund recently reiterated a bullish stance. In a July 24 letter, it described the market drop as a chance to buy and highlighted an anticipated Anthropic IPO as a possible trigger for gains.
First-quarter filings also revealed increased investments in AI infrastructure, including a new $43.9 million stake in T1 Energy and 3.39 million shares acquired in Vertiv Holdings. These moves shows a long-term conviction that AI remains a powerful growth engine despite short-term setbacks.
So far, Situational Awareness is down roughly 67% in July but retains about an 80% gain for the year.
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