Citadel Rescues AI Hedge Fund Situational Awareness After AI Stock Rout

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Situational Awareness, a San Francisco-based hedge fund led by 20-somethings and former OpenAI researcher Leopold Aschenbrenner, has sold the bulk of its stock portfolio to Kenneth Griffin’s Citadel.

The once-envied AI-focused fund entered crisis mode after suffering heavy losses in its tech holdings. These AI-related bets sank, leading to the sale of its assets.

Following the transaction, which served as a bailout from Citadel, the firm addressed its investors. Situational Awareness told its investors, "We let you down this month."

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