JPMorgan Cuts Off Lending to AI-Focused Hedge Fund Amid Steep Losses

JPMorgan Chase cut off lending to Situational Awareness, a hedge fund led by Leopold Aschenbrenner, after large losses tied to his AI bets led to near-collapse.

The AI-focused hedge fund liquidated most of its public equity holdings to Citadel following a global chip-stock rout that exposed its leveraged bets to steep losses. Aschenbrenner's fund rose to prominence with lofty bets on companies in the AI ecosystem and eye-popping returns.

JPMorgan notified Situational Awareness that it would end their lending relationship after the losses, a source said. Other Wall Street banks remain active brokers for the company.