Market Rumor Follow Up - Citadel buys Situational Awareness equity holdings after steep AI losses

Follow up on our prior post:

Market Rumor - Leopold Aschenbrenner’s Situational Awareness seeks to raise capital after AI rout

Situational Awareness, the $20bn hedge fund founded by former OpenAI employee Leopold Aschenbrenner, has sought to raise fresh capital from investors after suffering heavy losses during the recent rout in AI stocks, according to the Financial Times.

Predictionmarkets.orgThe Financial Times

Ken Griffin’s Citadel has swooped in to buy a large portion of hedge fund Situational Awareness’ $16bn public equity holdings after Leopold Aschenbrenner’s investment firm endured steep losses in the AI sell-off, according to The Financial Times.

Citadel, a $71bn multi-strategy hedge fund, forged the crunch deal within the past 24 hours, according to multiple people familiar with the matter, in one of the largest rushed stock transactions in Wall Street history.

The deal comes after Situational Awareness held urgent talks with multiple investors late on Wednesday about selling a significant portion of its public holdings, the people familiar with the matter said.

Situational Awareness also has private stakes in companies, including a $5bn Anthropic holding. It will continue to run as a private investment firm, according to one person familiar with the matter.

Source: https://www.ft.com/content/5fb44089-ecdf-4b48-bc14-1e8b4682b142?syn-25a6b1a6=1