This guy just

@rainy.yaps

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Situational Awareness LP

Why it worked

The video tells a compelling story of rapid financial success followed by an equally dramatic collapse, featuring high stakes and prominent figures in the finance world. This narrative structure, combined with the relatable lesson about risk management, likely resonated with a broad audience.

Summary

The video details the dramatic rise and fall of Leopold Aschenbrenner's AI hedge fund, Situational Awareness LP. After being fired from OpenAI, Aschenbrenner founded the fund, raised significant capital, and then lost most of it due to market downturns and margin calls, leading to Citadel acquiring his portfolio.

Structure

1Introduction of Leopold Aschenbrenner and his firing from OpenAI.
2Founding of Situational Awareness LP and its rapid growth.
3Market crash and margin calls on Aschenbrenner's fund.
4Citadel's acquisition of the fund's portfolio.
5The fund's collapse and remaining investments.
6Lesson on risk management in the market.

Product placement

Ken Griffin: founder and CEO of Citadel, a hedge fund. Citadel acts as a buyer of Leopold's public book. Removing it would change the story. Ken Griffin is mentioned by name and his role is described. Leopold Aschenbrenner: former researcher at OpenAI, founder of Situational Awareness LP. He acts as the seller of his public book. Removing him would change the story. Leopold is mentioned by name and his role is described. OpenAI: company where Leopold Aschenbrenner previously worked. It merely appears as a past employer. Removing it would not change the story. Situational Awareness LP: AI-focused hedge fund founded by Leopold Aschenbrenner. It acts as the seller of its public book. Removing it would change the story. The fund is mentioned by name and its actions are described. Citadel: hedge fund founded by Ken Griffin. It acts as the buyer of Leopold's public book. Removing it would change the story. Citadel is mentioned by name and its actions are described. Nebius: company whose stock was held by Situational Awareness LP. It merely appears as a holding. Removing it would not change the story. SK Hynix: company whose stock was held by Situational Awareness LP. It merely appears as a holding. Removing it would not change the story. Micron: company whose stock was held by Situational Awareness LP. It merely appears as a holding. Removing it would not change the story. CoreWeave: company whose stock was held by Situational Awareness LP. It merely appears as a holding. Removing it would not change the story. J.P. Morgan: broker that margin called Leopold's fund. It merely appears as a broker. Removing it would not change the story. Bank of America: broker that margin called Leopold's fund. It merely appears as a broker. Removing it would not change the story. Anthropic: AI company in which Situational Awareness LP still holds a stake. It merely appears as an investment. Removing it would not change the story. Financial Times: publication that reported on the deal. It merely appears as a source. Removing it would not change the story. Coin Bureau: Twitter account that reported on the fund's collapse. It merely appears as a source. Removing it would not change the story.

Original caption

Leopold Aschenbrenner just got liquidated 📉 His $45 billion AI hedge fund, Situational Awareness, got margin called this week, and Citadel bought his entire public portfolio in a single trade before the market even opened 💰 One of the wildest rise-and-fall stories in finance right now 👀 #situationalawareness #stockmarket #AI #finance #citadel

More from @rainy.yaps

On-screen text

This guy just made $1.6 billion off this guy single day Leopold Aschenbrenner a 24 year old former researcher at OpenAI who got fired 2024 over a leaked memo Situational Awareness An essay series on the future of AI by Leopold Aschenbrenner SA Situational Awareness In July 2024, former OpenAI researcher Leopold Aschenbrenner launched the AI-focused hedge fund Situational Awareness LP with $225 million in seed capital. Prominent backers included Stripe co-founders Patrick and John Collison, former GitHub CEO Nat Friedman, and investor Daniel Gross. instagram.com/evolving.ai $225 million and in two it into $45 billion How Leopold Aschenbrenner built a $45 billion AI hedge fund — and lost most of it in days PUBLISHED FRI, JUL 26 2024-10:44 AM EDT UPDATED JUL 27 2024-4:15 PM EDT betting early on AI chips data centers so this week -13.4% Samsung Electronics, 26 Jul 2024 (Yahoo Finance / AP) -14.7% SK Hynix, 26 Jul 2024 (Yahoo Finance / AP) 6,023.66 -10.8% (Yahoo Finance / AP) this guy Ken Griffin and CEO Citadel warned that surprise everyone with a rate hike running his 4x leverage and his main NEBIUS SK hynix micron and Micron and CoreWeave The fund's largest holdings at the end of the first quarter included: Nebius Group, Sandisk, Micron and CoreWeave, according to filings. All four of those stocks are down more than 35% this month. 35 and 47% his brokers J.P.Morgan BANK OF AMERICA America trigger called him Ken steps in Citadel offers to buy Leopold's entire public book $16 billion in a single block trade before market open The Financial Times he got a 10 per cent discount he got a 10% discount below and by the dust settled COIN BUREAU @coinbureau HUGE: An ex-OpenAI researcher's $45 BILLION hedge fund just collapsed to $10 BILLION. Situational Awareness had borrowed up to four times its own capital to bet on AI infrastructure. $45 billion fund to a $10 billion fund overnight the Fed never hiked rates stocks that Ken bought off Leopold bounced 20 to 30% the very next day so just to Situational Awareness isn't dead AI hedge fund Situational Awareness may have sold its public portfolio, but it still has its Anthropic shares Marina Tan, 4:26 PM PDT - Jul 27, 2024 $5 billion stake in Anthropic private AI positions here is you can be completely right about everything in the market until you're not. right doesn't shit risk FOLLOW FOR MORE this to anyone who thinks that can't lose.