Situational Awareness LP, the AI-focused hedge fund launched by Leopold Aschenbrenner in July 2024 after he left OpenAI and published a 165-page essay on artificial intelligence, peaked at roughly $45 billion in assets under management by early July 2026. A semiconductor-stock correction weeks later erased an estimated $35 billion, cutting assets to approximately $10 billion, a drawdown of about 67%. The fund had concentrated its portfolio in AI infrastructure equities, and losses led Goldman Sachs, JPMorgan, Bank of America, and Citibank to issue margin calls. Most of its public-equity portfolio was liquidated, with Ken Griffin’s Citadel acquiring approximately $16 billion in assets and later unwinding more than 80% of the related risk through block trades. Situational Awareness continued operating by investing an additional $400 million in a previously unidentified private company by August 2026, bringing its total commitment to that entity to $500 million. The SEC (U.S. securities regulator) has reportedly focused on the fund, although regulatory filings have indicated compliance and the monitoring has primarily reflected the scale of market movements rather than an active investigation into the fund or Aschenbrenner.