Post by Augustine Chiagozie (@pabloexchange)

🔽 AI Fund Lost 70% Assets in Days

The $45B AI hedge fund Situational Awareness lost nearly 70% of its assets in just a few days. Its 24-year-old founder Leopold Ashenbrenner managed the crisis while guests arrived for his wedding.

Ashenbrenner left OpenAI in 2024 and quickly gained fame with an AI future essay before launching the fund. It achieved over 1000% returns in a few years, fueled by heavy leverage-borrowing $3-4 for every $1 of capital.

When the AI market turned down, the fund had to sell almost its entire portfolio. The crash coincided with Leopold's wedding to an Anthropic executive. He was fired from OpenAI for sharing data with Anthropic, where his fund still held $3.5B.

🔽 AI Fund Lost 70% Assets in Days The $45B AI hedge fund Situational Awareness lost nearly 70% of...

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DANIEL AKPENEKO: Inside life😅🤣🤣
Felix: It shows that extraordinary gains built on heavy leverage can disappear just as quickly, proving that risk management matters as much as ambition.