Situational Awareness LP Sees Assets Plummet to $10 Billion Amid AI-Related Equities Crash

Situational Awareness LP, a hedge fund founded by Leopold Aschenbrenner in late 2024, has seen its assets under management drop to around $10 billion after being forced to liquidate most of its public stock portfolio. The fund had grown rapidly, reaching over $20 billion in AUM by mid-2026, thanks to its aggressive bets on AI infrastructure and crypto mining stocks.

The fund's leveraged positions were as high as 4x in companies like Core Scientific and Iris Energy, which have repositioned themselves as dual-purpose AI and crypto infrastructure plays. However, a significant correction in AI-related equities in July sent the fund's positions into freefall.

As a result, Aschenbrenner was forced to liquidate the bulk of its public stock portfolio to Citadel, effectively halving the fund's AUM from over $20 billion to around $10 billion. The only position retained was a significant stake in Anthropic valued at approximately $5 billion.