AI Fund that Made 439% Profit in Six Months Faces Backlash, Citadel Takes Over Majority of Stock Positions

According to DynaBeat Monitoring, Situational Awareness managed by 24-year-old former OpenAI researcher Leopold Aschenbrenner sold most of its public stocks to Citadel after a sharp drop in AI stocks. The fund had approximately $16 billion in public stocks before the transaction, with heavy holdings in companies like SK Hynix, CoreWeave, and Nebulus along the AI supply chain.

The fund had previously leveraged its positions. Following a market reversal, it needed additional funds or had to sell assets, ultimately choosing to reduce its exposure. CNBC stated that the fund liquidated its public stocks, while Reuters and The Wall Street Journal reported that it sold most of its positions.

Citadel primarily took over stocks financed by broker loans. Post-trade, the fund still holds around $10 billion in assets, including some stocks and private equity in companies like Anthropic.