Ex-OpenAI researcher Aschenbrenner's AI hedge fund plunges 67% in July

Published Aug 3, 04:30 PM UTC

Leopold Aschenbrenner, a 25-year-old former OpenAI researcher, saw his AI-focused hedge fund Situational Awareness surge 439% in the first half of 2026, reaching $45 billion in assets. However, a market correction in July, combined with up to 4x leverage on positions, led to massive losses. Margin calls forced Aschenbrenner to sell $10 billion in public stock to Citadel to avoid liquidation. The fund's portfolio declined 67% in July. Aschenbrenner took full responsibility, calling the losses 'expensive scars.' The article also notes broader concerns about leveraged trading in the AI sector, citing a Goldman Sachs report that over 1.2 million Korean retail traders received margin calls on a single day in July.