Former FTX member Leopold Aschenbrenner’s $20B AI fund blows up

Leopold Aschenbrenner, the founder of hedge fund Situational Awareness, has seen his leveraged positions liquidated following a swift downturn in AI stocks.

Aschenbrenner, a former member of Sam Bankman-Fried’s FTX Future Fund team, launched his fund in 2024 and ran it up 1,000% by May this year.

However, CNBC reported Thursday that Situational Awareness had suffered “heavy losses,” needed cash for margin calls, and was consulting with investment bankers for the possibility of an orderly wind-down.

By midday, the Wall Street Journal reported that Ken Griffin’s Citadel had bought “the bulk of its stock portfolio.”

The fund was allegedly up 439% net of fees from January 1, 2026 through June 30 per a July 24 investor letter the FT cited. Then July happened.

Aschenbrenner had borrowed money to upsize his AI bets, including Sandisk, Nebius Group, and SharonAI Holdings that have each lost at least 30% during the month of July.

Leverage that multiplies gains on the way up does the same to losses on the way down. Holding a 3x leveraged portfolio in just those three stocks this month would have wiped out to $0.

… Continue reading the full article at the original source below.