Leopold Aschenbrenner’s hedge fund Situational Awareness has invested $400 million in an unnamed private company backed by Sequoia Capital, marking its return to investing following recent turmoil in its public stock portfolio, according to a Bloomberg report. 

Alfred Lin, a partner at Sequoia, confirmed Thursday that the investment went to one of the venture capital firm’s portfolio companies but declined to identify the business.

“On Situational Awareness, he did just wire $400 million to a company that we invested in,” Lin said during an interview with Bloomberg TV.

The payment followed a $100 million investment that Situational Awareness made in the same company last month, bringing its recently disclosed commitment to the business to $500 million.

The investment came days after a decline in AI related stocks led lenders to demand additional collateral from Situational Awareness. Aschenbrenner initially considered selling stakes in private companies and approached Sequoia and Greenoaks about purchasing some of the positions.

The fund ultimately retained its private holdings after reaching an agreement with Ken Griffin’s Citadel to sell a large portion of its public stock portfolio at a discount of more than 10%. The transaction allowed Situational Awareness to repay borrowed funds and reduce pressure from margin calls.

“Ken Griffin showed up with what was a better solution for Leopold at that moment in time and he went with the better solution,” Sequoia partner Pat Grady said.

Situational Awareness previously reached as much as $45 billion in assets after generating large returns through investments tied to AI infrastructure. Its losses were amplified by borrowed money as several of its public holdings declined sharply in July.

The fund retained stakes in private companies following the Citadel transaction, including its investment in Anthropic and positions in AI infrastructure companies such as Fluidstack and chip developer MatX.

Sequoia did not disclose whether the latest $400 million investment went to one of those companies. Lin expressed continued confidence in Aschenbrenner, saying the investor is “going to be around.”