Embattled hedge fund Situational Awareness invests $400M in chip startup Source Foundry
The AI-focused hedge fund is still making some big bets.
Hedge fund Situational Awareness announced a substantial investment of $400 million in chip startup Source Foundry. The AI-focused fund, founded by Leopold Aschenbrenner, a former OpenAI researcher, is known for its significant bets in the industry. This investment brings Situational Awareness's total stake in Source Foundry to $500 million.
Aschenbrenner, who launched the fund in 2024 without prior trading experience, saw early strong returns but faced considerable losses due to the downturn in AI infrastructure stocks. In July, the fund divested most of its public portfolio to Ken Griffin’s Citadel, though it retained its investment in Anthropic. Despite these setbacks, Situational Awareness's assets under management dropped from $20 billion to $10 billion. However, the hedge fund's investments continue to signal confidence in pioneering technologies.
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