JPMorgan Cuts Lending to AI Hedge Fund After Big Losses

JPMorgan Chase cut lending to Leopold Aschenbrenner's hedge fund Situational Awareness after large losses tied to AI bets led to a near-collapse, a source familiar with the matter told Reuters.

The AI-focused hedge fund liquidated most of its public equity holdings to Citadel after a global chip-stock rout exposed its leveraged bets to steep losses.

JPMorgan notified Situational that it would end its lending relationship after the losses, according to the source. Other Wall Street banks remain active brokers to the company.