Jane Street took $15 billion loss in July as AI stocks slumped

Jane Street, a prominent market maker, reported a staggering $15 billion loss in July due to significant declines in AI stocks, according to sources familiar with the situation. The heavy losses were attributed to the decline of AI-focused hedge fund Situational Awareness, which had a substantial impact on asset prices across the equity markets.

Jane Street, which has made substantial investments in Situational Awareness and AI ventures, experienced one of its rare and severe down months in July amidst the volatile stock markets. Wrong bets on option positions involving Chinese markets also contributed to the losses, the source noted, citing private details. Despite the dire financial situation, Jane Street had generated more than $40 billion in net trading revenues so far this year, which surpasses its total earnings for all of 2025, a year in which the firm set a Wall Street record.

The Financial Times reported on the behind-the-scenes impact of the debacle on Jane Street's financial books as the firm sought to refinance billions of dollars in debt.