Situational Awareness, a hedge fund impacted by AI market fluctuations, recently invested $400 million in Source Foundry, a startup focused on innovative chip manufacturing. This investment is part of a total of $500 million the fund has dedicated to the company, which has raised over several hundred million since its inception last year at a valuation of $5 billion. Source Foundry was founded by Stanford researchers Abdulmalik Obaid and Joe Burg and has previously attracted investment from Sequoia Capital.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

https://www.wsj.com/tech/ai/situational-awareness-bets-400-million-on-stealth-chip-startup-after-crash-02c7374e

Situational Awareness Bets $400 Million on Stealth Chip Startup After Crash

Investment marks the latest known private-company bet by Situational Awareness after quick sale of its stock portfolio

Kate Clark

and

Anissa Gardizy

Comments Button

Listen

(2 min)

Leopold Aschenbrenner poses for a photo in San Francisco, California. Leopold Aschenbrenner runs Situational Awareness.Josh Edelson for Situational Awareness

AI-battered hedge fund Situational Awareness made a big bet this week in Source Foundry, a private company aiming to reinvent the way chips are manufactured, according to people familiar with the matter.

The company has invested $500 million in the startup, including a fresh $400 million infusion this week, one of the people said. Founded last year by Stanford University researchers Abdulmalik Obaid and Joe Burg, Source Foundry has already raised at least several hundred million dollars to date, including a recent fundraising at a valuation of $5 billion, one of the people said. Sequoia Capital previously backed the startup.

Videos

Most Popular

OPINION

Exclusive | Situational Awareness Bets $400 Million on Stealth Chip Startup After Crash

Situational Awareness Bets $400 Million on Stealth Chip Startup After Crash

Investment marks the latest known private-company bet by Situational Awareness after quick sale of its stock portfolio

Videos

Most Popular News

Most Popular

Further Reading

Inside the Long, AI-Powered Quest to Perfect Pringle-Making

Earendil Hits Regulatory Hurdle as It Seeks Hong Kong IPO

Chip Maker Infineon Forecasts Strong Revenue Growth on Booming AI Demand

AMD Shares Fall 8% as Elon Musk Commits to Nvidia Chips for SpaceX

ON Semiconductor Reports Higher Profit, Revenue on Growing AI Data Center Business