BlockBeats News, July 30th - According to CNBC, Situational Awareness, an AI-themed hedge fund founded by 25-year-old Wall Street rising star and former OpenAI researcher Leopold Aschenbrenner, has suffered significant losses due to misjudgment in software stock investments. The fund has currently suspended some of its trading activities and has been forced to urgently raise funds to address the crisis.

According to sources familiar with the matter, some key brokers of the institution - including Bank of America, Goldman Sachs, and JPMorgan Chase, among other financial institutions - have been assisting the fund in meeting leverage requirements or orderly reducing its positions. Insiders also revealed that these brokers had spread some of the fund's assets in long and short positions before the trading began to facilitate sales.

The future of the Situational Awareness fund remains uncertain, as it is currently unclear whether it will meet its profit requirements through negotiated asset sales or undergo a comprehensive asset liquidation. The fund is also attempting to increase liquidity by selling its stake in private companies, including its previous investment in Anthropic. However, the quantity of shares offered is currently unknown, but potential buyers have expressed interest in purchasing some or all of the shares.

Documents show that as of the end of the first quarter, Situational Awareness fund's largest holdings included Nebius, Shandie, Micron, and CoreWeave, all of which have seen a stock price drop of over 35% this month. Established in 2024, the fund's investment thesis was based on Aschenbrenner's belief in the imminent arrival of AGI. At one point, the fund had approximately $20 billion in assets under management, with a net return of 439% as of June 2026, making it one of the most prominent star funds in this AI bull market cycle. Its holdings covered major AI infrastructure and computing power chain-related companies, leveraging its positions.