Citadel Snaps Up Situational Awareness Portfolio Amid AI Market Volatility

Citadel, one of the largest hedge funds globally, has acquired a stock portfolio from Situational Awareness LP, an AI-focused fund founded by Leopold Aschenbrenner. The move comes after Situational Awareness reportedly took significant losses on certain AI positions.

The fund, which grew to over $20 billion in assets under management as of mid-2026, has seen a 439% gain in the first half of 2026 alone. Its portfolio was heavily allocated to AI infrastructure plays like Bloom Energy and Nvidia, along with positions in crypto miners.

Citadel is uniquely positioned to absorb positions that might be too painful for Situational Awareness to hold through drawdowns. The acquisition frees up capital for Situational Awareness, reduces concentration risk, and potentially locks in gains on positions that have already delivered enormous returns.