Situational Awareness, an investment fund created by Leopold Aschenbrenner, a former OpenAI researcher and prominent AI forecaster known as the "Nostradamus of AI," has collapsed by 67% and faces near-liquidation. The 25-year-old founder had transformed hundreds of millions of dollars into tens of billions in approximately two years.
Recent market declines in AI-related stocks exposed critical vulnerabilities in the fund's strategy. Operating with leveraged positions, the fund amplified its losses during the downturn, forcing it to liquidate much of its portfolio. The fund sold a significant portion of its holdings to Citadel, one of the world's largest hedge funds, as part of the restructuring.
