AI stock bets sank a hedge fund 67% in July

Hedge fund Situational Awareness, run by Leopold Aschenbrenner, lost 67% of its money in July 2026 betting on AI stocks, Reuters reported, citing a letter to investors. A hedge fund pools investors' money to chase high returns. The collapse came weeks after the fund backed a US$1.6 billion SharonAI deal in June. On August 12, it revealed an 11.62% stake in Japan's Taiyo Yuden.