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AI investor’s $45B hedge fund implodes after risky chip stock bets
nypost.com • • business
Key Points:
- Leopold Aschenbrenner’s hedge fund, Situational Awareness, held massive $5.7 billion and $5.6 billion stakes in SanDisk and Micron Technology, which comprised over half of its US stock portfolio that grew from under $4 billion to over $20 billion in Q2 2026.
- In July, SanDisk and Micron shares plunged 47% and 29% respectively, causing the fund to lose approximately 67% of its portfolio value in one month, triggering margin calls and forced fire sales to Citadel.
- The fund’s value collapsed from about $45 billion to $10 billion despite a reported 439% return in the first half of 2026, with other holdings like Bloom Energy also suffering significant losses.
- Aschenbrenner, a 24-year-old AI expert and former OpenAI employee, gained prominence with his essay predicting artificial general intelligence by 2027, but his fund’s collapse occurred just days before his lavish California wedding.
- Despite the setback, Aschenbrenner made headlines again for placing large bets shortly after the fund’s dramatic blow-up, highlighting his ongoing influence in AI investment circles.
