Leopold Aschenbrenner’s Situational Consciousness hedge fund has transferred nearly all of its publicly traded inventory positions to Citadel after incurring substantial losses on synthetic intelligence bets.
The transaction follows efforts by the agency to search out consumers for these holdings and entice contemporary investor cash in latest days, reviews The Wall Avenue Journal.
Among the many affected positions had been shares in South Korean semiconductor producer SK Hynix and different AI infrastructure firms that declined sharply amid broader market skepticism towards the sector. SK Hynix just lately reported a 557% year-over-year improve in working revenue and its inventory worth is up by round 16% on the time of writing.
The fund, launched roughly two years in the past by Aschenbrenner, a former OpenAI researcher, had expanded quickly to handle effectively over $20 billion earlier than the latest downturn.
Millennium Administration, a hedge fund, additionally submitted a bid for the portfolio through the sale course of.
Situational Consciousness continues to carry its non-public fairness investments, which embody positions in main AI developer Anthropic.
Further reporting signifies the fund skilled sharp latest drawdowns in lengthy AI infrastructure names alongside adversarial strikes in sure quick positions, although it remained considerably optimistic on a year-to-date foundation via June.
The agency has communicated with traders about potential capital commitments beginning in August and highlighted upcoming catalysts corresponding to a doable Anthropic preliminary public providing.
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