Citadel buys bulk of former OpenAI researcher’s stock portfolio after AI losses

Situational Awareness, the AI focused hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, has sold most of its public stock portfolio to Ken Griffin’s Citadel after suffering steep losses, according to reports.

The firm had recently sought buyers for its holdings while holding discussions with investors and lenders about raising additional capital. Citadel completed the transaction after Millennium Management and other firms also considered acquiring the portfolio.

Situational Awareness had rapidly grown to manage more than $20 billion since its launch in 2024, driven by concentrated and leveraged bets on companies expected to benefit from artificial intelligence development.

Those positions delivered a reported 439% return during the first half of 2026 before a sharp reversal in AI related stocks produced heavy losses. Its public holdings included South Korean chipmaker SK Hynix and other companies affected by the recent technology market selloff.

The public equity portfolio was valued at approximately $16 billion before the sale, according to the Financial Times. The transaction was completed within roughly 24 hours with assistance from the fund’s prime brokers, Goldman Sachs and JPMorgan Chase.

Situational Awareness reportedly retains its private investments, including a stake in AI developer Anthropic valued at about $5 billion. The firm is expected to continue operating as a private investment company following the exit from its publicly traded positions.

Aschenbrenner founded the firm after leaving OpenAI in 2024 and gained prominence through his writings on the expected acceleration of AI development.