Leopold Aschenbrenner's AI-focused hedge fund Situational Awareness, which had reached approximately $45 billion in assets under management, was forced to significantly reduce its public stock positions on 31 July 2026 following a historic momentum reversal that triggered margin calls. The fund, founded by the former OpenAI researcher, experienced substantial losses within days despite a relatively stable broader market environment.
Citadel, led by Ken Griffin, stepped in to acquire the bulk of Situational Awareness's public stock positions during the margin call crisis, according to reporting on the event. Following the transfer of assets to Citadel, Situational Awareness's assets under management declined to approximately $10 billion from the prior $45 billion level.
The episode centres on AI-related equity positions held in concentrated form by the fund. The forced liquidation of those positions, and their subsequent transfer to Citadel, represents a significant shift in ownership of a substantial block of AI-sector public equities.
Sources: Cnbc TOP, Bloomberg Markets