Situational Awareness Makes $400 Million Investment Weeks After Near-Collapse

Situational Awareness, the hedge fund led by former OpenAI researcher Leopold Aschenbrenner, has reportedly poured $400 million into a privately held company, just weeks after the fund nearly went under due to a wave of margin calls.

Fund Doubles Down on Same Company

According to Bloomberg, citing people familiar with the matter, the fund had already invested $100 million in the same undisclosed company back in July. The newer $400 million investment was finalized on Tuesday, showing the fund is still willing to commit large sums despite recent turmoil.

A Rough July for the Fund

Situational Awareness saw its assets drop by roughly 78% last month after a sharp sell off in AI-related stocks triggered margin calls from major Wall Street lenders. The fund reportedly looked into selling some of its private company stakes to raise emergency cash, according to the Financial Times.

To stay afloat, the fund ended up selling most of its public stock holdings to Ken Griffin’s Citadel. That move allowed it to pay back lenders while keeping its private investments intact.

Heavy Bets on AI Infrastructure

Before the crash, Situational Awareness had built a large position in companies tied to power supply and data centers for AI, including several Bitcoin mining firms that had shifted focus toward AI computing work. A regulatory filing from May, covering holdings as of the end of March, showed the fund held about $1.11 billion spread across seven Bitcoin mining stocks, including IREN, Core Scientific, Riot Platforms, and CleanSpark.