JPMorgan has notified Situational Awareness that it will terminate its lending relationship with the AI-focused hedge fund after the fund disclosed heavy losses. A global chip-stock sell-off in July triggered margin calls and reduced the fund’s portfolio value by 67% in one month. Situational Awareness later transferred most of its public-market equity positions to Citadel. Goldman Sachs, Citi, Bank of America and Clear Street continue to provide brokerage services, while the fund has begun buying call options on AMD, Bloom Energy, CoreWeave, SK Hynix and SanDisk. Leopold told investors that the fund had approached an unacceptable level of permanent capital impairment and would reduce leverage while continuing to pursue AI-focused investments.