Citadel, a hedge fund operated by Leopold Aschenbrenner, acquired the majority of Situational Awareness's stock portfolio following significant losses related to AI investments. The firm has been actively seeking buyers and attempting to raise new capital, with notable public investments including South Korean chipmaker SK Hynix. This situation highlights the challenges faced by AI-focused investment firms amid a backlash from investors.

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https://www.wsj.com/finance/citadel-buys-situational-awarenesss-stock-portfolio-after-big-losses-in-ai-5117159b

Citadel Buys Situational Awareness’s Stock Portfolio After Big Losses in AI

The highflying hedge fund run by Leopold Aschenbrenner is in crisis mode after AI-related bets sank

Gregory Zuckerman

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Peter Rudegeair

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A trader views financial market data on multiple screens at the New York Stock Exchange. A trader worked on the floor of the New York Stock Exchange.Yuki Iwamura/Associated Press

Situational Awareness, the highflying artificial-intelligence-focused hedge-fund firm, sold the bulk of its stock portfolio to Ken Griffin’s investment firm Citadel after suffering deep losses, according to people familiar with the matter.

The firm had been seeking buyers for its holdings and trying to raise new capital in recent days, some of the people said. Its public investments include South Korean chip maker SK Hynix and others that had been stung by an investor backlash to AI.

Exclusive | Citadel Buys Situational Awareness’s Stock Portfolio After Big Losses in AI

Citadel Buys Situational Awareness’s Stock Portfolio After Big Losses in AI

The highflying hedge fund run by Leopold Aschenbrenner is in crisis mode after AI-related bets sank

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