Aschenbrenner’s AI hedge fund shrinks from $45 billion to about $10 billion after $35 billion drawdown
AI Market Summary
A leveraged unwind at AI-focused hedge fund Situational Awareness highlights fragility in concentrated AI infrastructure equity positioning and the transmission of margin calls into forced selling. The fund's large drawdown and discounted block sale underscore liquidity risk, while renewed interest from Silicon Valley suggests risk appetite persists despite losses. Nebius is directly implicated as a core long and has already declined materially, keeping near-term sensitivity elevated.
Impact level
● Medium
Affected assets
NCSKNBIS2USD/USDT-1.75%
AI Insight · NCSKNBIS2USD/USDTAI Insight
● Neutral
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Leopold Aschenbrenner’s AI hedge fund, Situational Awareness, suffered a rapid drawdown after leveraged long bets on AI infrastructure stocks triggered margin calls during a late-July market pullback. The fund fell from a $45 billion peak in early July to about $10 billion by late July, a loss of roughly $35 billion in investor capital over about two weeks. Positions were concentrated in Nebius, SanDisk, CoreWeave and Korea-listed SK Hynix, with a short position in Adobe; Nebius fell 17.98% from July 1 to Aug 7. Despite the losses, Silicon Valley insiders have signaled interest in providing new capital, and the fund still holds private stakes including Anthropic, Fluidstack and MatX.
