Leopold Aschenbrenner's AI Hedge Fund Seeks New Capital After Sector Selloff, Report Says

Leopold Aschenbrenner’s high-flying artificial intelligence hedge fund, Situational Awareness LP, is seeking new capital after suffering significant losses in the recent AI stock selloff, according to a July 30 report from the Financial Times.

Capital Raise Follows Sharp Reversal

The fund, which managed approximately $20 billion prior to the downturn, has reportedly approached existing investors and lenders for new money. Some investors have also been offered the opportunity to purchase assets directly from the fund's portfolio, the FT reported.

The move for fresh capital underscores a dramatic reversal of fortune. Situational Awareness had delivered standout performance for most of the year, posting gains of approximately 439% after fees through the end of June 2026. The fund's concentrated bets on AI infrastructure, however, left it exposed to the sharp selloff that hit the sector in July.

Concentrated Strategy Under Pressure

Launched by the former OpenAI researcher after his departure from the company in April 2024, the fund's strategy focused heavily on the infrastructure underpinning the AI boom. Its known long positions included companies in power generation, AI computing, and cryptocurrency mining.

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• Publicly traded holdings like Bloom Energy, CoreWeave, and Nebius were hit hard in the recent rout.
• A Q1 2026 filing showed the fund also held positions in companies like Bitdeer Technologies and HIVE Digital Technologies.

The fund’s difficulties mirror broader market stress. According to reports, major banks including Goldman Sachs and JPMorgan Chase have issued margin calls to hedge funds with highly concentrated AI positions, demanding more collateral to back their leveraged bets.

Fund Maintains Bullish Outlook

Despite the drawdown, Situational Awareness appears to remain constructive on the sector's long-term prospects. In a July 24 letter to investors cited by the FT, the fund described the tech rout as a buying opportunity.

The letter reportedly pointed to a potential initial public offering by AI developer Anthropic as a forward catalyst for the industry. It also concluded by noting that it was a “particularly good time to add funds,” according to the FT. The exact size of the fund's losses has not been publicly disclosed, and it is unclear whether any new capital commitments have been secured.