JPMorgan Chase & Co. has terminated its prime brokerage lending relationship with Leopold Aschenbrenner’s hedge fund, Situational Awareness, after record-setting losses during a July downturn in artificial-intelligence stocks, the Financial Times reported. The fund lost 67% of its assets in July, described as the largest dollar loss in hedge fund industry history, but remained up 80% for the year at the end of the month after selling most of its public-market positions to Ken Griffin’s Citadel. Aschenbrenner is seeking to rebuild market access through boutique prime broker Clear Street after major lenders stepped back. Morgan Stanley held early discussions but ultimately declined to establish a banking relationship. In a letter to investors, Aschenbrenner said the fund would restart its hybrid public-private strategy with lower leverage, using fully paid flex options on semiconductor companies including AMD, Intel, SK Hynix and SanDisk, as well as AI infrastructure provider CoreWeave.