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Situational Awareness invests $400M after near collapse
The hedge fund reportedly invested $100 million in the same unnamed company in July and completed the latest deal on Tuesday, after assets fell about 78% in July amid margin calls.
Cointelegraph reports that the hedge fund Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, reportedly made a $400 million investment in an undisclosed private company days after it nearly collapsed under margin calls.
According to Cointelegraph, the fund invested $100 million in the same unnamed company in July, with the latest investment completed on Tuesday. The report says assets at Situational Awareness fell about 78% in July following an AI stock sell-off that triggered margin calls from Wall Street lenders.
Cointelegraph adds that the fund sought fresh capital and considered selling stakes in private companies, and later sold most of its public equity portfolio to Ken Griffin’s Citadel. The proceeds helped it repay lenders while allowing it to keep its private holdings.
The report also notes that Situational Awareness had invested heavily in power and data centers supporting AI, including Bitcoin mining firms that expanded into AI computing, citing a US SEC filing dated May 18 that showed about $1.11 billion in positions across seven Bitcoin mining stocks as of March 31.
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