American technology executive and investor
A high-profile AI-focused hedge fund has unwinded after massive leverage and a momentum crash. Citadel has stepped in to acquire many of its publicly traded holdings while the fund holds private investments, including Anthropic. Regulators and investors watch for how this affects AI infrastructure bets and market risk.
An AI-focused hedge fund called Situational Awareness has reportedly lost about 67% in a month and sold most of its public portfolio to Ken Griffin’s Citadel. The fund’s debt-fuelled, highly leveraged bets on chipmakers and AI firms has forced the sale and has prompted Wall Street to reassess concentrated AI exposures.