Citadel Buys Situational Awareness Portfolio After Losses
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- Situational Awareness offloaded the bulk of its public-equity portfolio after suffering heavy losses over the past month, according to a Wall Street Journal report cited by MarketWatch
- Citadel, the hedge fund founded by billionaire Ken Griffin, was reportedly the buyer of Situational Awareness's stock portfolio
- Leopold Aschenbrenner, a former OpenAI researcher in his mid-20s, founded Situational Awareness as a closely watched AI-focused hedge fund
- Neither Citadel nor Situational Awareness responded to MarketWatch's request for comment on the reported transaction
Why it matters: Situational Awareness was one of the most prominent AI-convict hedge funds, and its mass portfolio offload after heavy losses marks a dramatic reversal. Citadel — one of the world's largest hedge funds — reportedly absorbing the positions signals institutional conviction that AI stocks have bottomed, even as the fund's collapse underscores how punishing the past month has been for concentrated AI bets.
