BREAKING

Leopold Aschenbrenner: A former OpenAI researcher who became known as “the Warren Buffett of AI”, built Situational Awareness LP into a $45B hedge fund on one simple thesis: AGI is coming, and the companies powering the compute buildout are the trade of the decade. Through June, it worked. The fund was up 439% after fees. Then July happened. A brutal AI stock selloff hit his infrastructure longs (SK Hynix, Bloom Energy, CoreWeave, Micron.. all down 30%+ in weeks) at the same time his short bet against Adobe rallied instead of falling 🤦‍♂️. Squeezed from both sides, and running heavy leverage, the losses compounded fast. On July 24, he told investors the selloff was a buying opportunity and asked for more capital. Five days later, the banks disagreed.. margin calls hit. On July 30, his entire public stock portfolio was sold in a single block trade to Ken Griffin’s Citadel, reportedly at a steep discount. The fund isn’t dead, he keeps his private stakes (including Anthropic) and will keep operating as a private investor. But the public trading book that made him famous is gone. The lesson underneath all of it: leverage cuts both ways. It turns conviction into 439% gains on the way up, and it turns a bad month into a forced liquidation on the way down. Drop a follow for more breakdowns like this! — #Finance #Investing #StockMarket #HedgeFund #WallStreet ​​​​​​​​​​​​​​​​