Situational Awareness targets $40bn Fluidstack valuation months after near-collapse
Situational Awareness is seeking fresh capital from investors to participate in a funding round for AI infrastructure startup Fluidstack that could value the company at $40bn, just months after leveraged technology bets pushed the fund close to collapse, according to a report by Bloomberg. The fund, founded by former OpenAI Superalignment researcher Leopold Aschenbrenner, is offering existing…
Situational Awareness, an AI-focused investment firm, is attempting to raise additional funds to back AI infrastructure company Fluidstack, which could potentially reach a $40bn valuation, as reported by Bloomberg. Founded by former OpenAI researcher Leopold Aschenbrenner, the fund was on the brink of collapse after making aggressive technology investments, but it is now seeking fresh capital from existing clients to co-invest in Fluidstack.
Fluidstack specializes in AI computing infrastructure and has seen a more than double increase in valuation compared to an earlier funding round.
The financing comes after a difficult period for Situational Awareness, which had to sell a majority of its listed equity portfolio to Citadel to stabilize its finances and considered selling stakes in Anthropic, MatX, and Fluidstack. Despite this, Aschenbrenner has continued to invest in AI infrastructure, including a $500m investment in semiconductor startup Source Foundry.
The latest funding round for Fluidstack marks a significant step for the company, which has also received backing from major players like Anthropic and Google.
The proposed investment underscores Situational Awareness's continued confidence in AI infrastructure, despite recent losses and concerns over the sustainability of expansion due to high financing costs.
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