Former OpenAI researcher Leopold Aschenbrenner is returning to AI-focused investments just six weeks after his hedge fund's dramatic collapse. According to reports from CNBC, his fund Situational Awareness purchased call options on AMD, Bloom Energy, CoreWeave, SK Hynix and SanDisk during late last week and into this week. The trades represent a strategic shift as Aschenbrenner continues betting on companies supplying the computing capacity and electricity that AI requires.
The return to AI investments comes after Situational Awareness suffered a $35 billion collapse in July. As reported by CNBC, the fund's assets shrank from a peak above ₹3,600 crore to approximately ₹800 crore. The collapse was triggered by borrowed money magnifying falling share prices, which created demands for cash that the fund could not meet. The dramatic decline exposed the risks of Aschenbrenner's concentrated bet on AI-related companies.
Friday's trading session showed mixed results for the AI stocks. According to CNBC, Bloom Energy rose nearly 7% and AMD almost 3%, while SanDisk and CoreWeave declined. The trading activity drew attention from market observers, with CNBC's Jim Cramer noting that "Someone is shooting against all the Situational Stocks!" The familiar names have generated significant market interest as investors monitor Aschenbrenner's renewed positioning in the AI sector.
Aschenbrenner's current strategy uses call options contracts, which allow buyers to purchase shares at a fixed price before a deadline. As reported by CNBC, when paid for upfront without borrowing, these options' losses are capped at the purchase cost. However, the entire amount can still disappear if the options expire worthless. The use of call options represents a more conservative approach compared to the previous leveraged strategy that contributed to the fund's collapse.
Following the fund's collapse, Ken Griffin's Citadel purchased distressed holdings at a discount, while Situational Awareness retained private investments including Anthropic. According to CNBC, the SEC later subpoenaed Wall Street banks over their dealings with the fund, though the reported inquiry carried no allegation of wrongdoing. It remains unclear whether Aschenbrenner is using surviving cash or fresh investor money for his renewed AI investments, as he continues betting on the companies behind the AI boom with contracts that put a deadline on payoff.
