Situational Awareness Sought Capital From Investors After AI Rout, Signaling Forced Deleveraging

Leopold Aschenbrenner's AI hedge fund Situational Awareness held talks with existing investors to raise capital after an AI share rout, per the FT. The fund sold its $16 billion public equity book to Citadel, dropping assets to ~$10 billion from a $20 billion-plus peak. Bloomberg confirmed forced liquidation. The fund retained its Anthropic stake.