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24-Year-Old Hedge Fund Prodigy's AI Fund Loses 73% After Forced Fire Sale
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Leopold Aschenbrenner, a 24-year-old former OpenAI researcher dubbed the 'Nostradamus of AI,' saw his hedge fund, Situational Awareness, lose over 70% of its value in a dramatic collapse. Launched in 2024 with $100 million from prominent tech investors, the fund grew to roughly $30 billion by investing heavily in AI-adjacent startups and data center companies, at one point quadrupling investor money. However, a sharp drop in AI stocks triggered a margin call from Goldman Sachs, one of the fund's largest lenders. Over 30 hours, the fund was forced to sell roughly $20 billion in stock, with rival Citadel buying much of it at a discount in an early morning call between Aschenbrenner and Citadel founder Kenneth Griffin. The fund survived but was left with approximately $8 billion, down from $30 billion at the start of July.
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Jonathan Small Mon, August 3, 2026 at 7:00 AM PDT 1 min read
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Leopold Aschenbrenner, once hailed as the “Nostradamus of AI” for a viral essay predicting a wave of transformative artificial intelligence, saw his own hedge fund suffer a dramatic collapse.
The 24-year-old former OpenAI researcher launched Situational Awareness in 2024 with $100 million from prominent tech investors, according to the New York Times. The fund, however, proved less adept at navigating AI investment volatility.
- The fund invested heavily in AI-adjacent startups and data center companies.
- At its peak, it quadrupled investor money and grew to roughly $30 billion.
- A sharp drop in AI stocks triggered a margin call from Goldman Sachs, one of the fund’s largest lenders.
Over the next 30 hours, Situational Awareness scrambled to sell approximately $20 billion in stock. Rival hedge fund Citadel agreed to buy much of the portfolio at a discount, following an early morning call between Aschenbrenner and founder Kenneth Griffin.
The fund survived but was left with roughly $8 billion — down from $30 billion at the start of July, a decline of more than 70%.
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Yahoo FinanceWestern
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AI Hedge Fund Situational Awareness Sells $16B Portfolio to Citadel After Losses