Ken Griffin’s Citadel just became the buyer of last resort for one of the most high-profile AI fund blowups in recent memory. On July 30, the $71B hedge fund completed its acquisition of the public equity portfolio from Situational Awareness LP, the AI-focused fund founded by former OpenAI researcher Leopold Aschenbrenner in late 2024.
The deal transferred roughly $5.5B in equity positions, carved out of a portfolio that once sat atop a staggering 439% net return through June 30. Situational Awareness retained approximately $10B in remaining assets post-sale, including its private equity stakes in companies like Anthropic.
From 439% returns to forced selling
Situational Awareness LP rode a concentrated bet on AI infrastructure stocks to eye-popping returns, with peak assets under management estimated between $20B and $45B. Mounting margin pressures forced aggressive deleveraging.
The portfolio that changed hands included substantial positions in Broadcom, Intel, CoreWeave, and SK Hynix, all names deeply embedded in the AI compute supply chain.
