• Situational Awareness, led by Leopold Aschenbrenner, made a $400M private investment just days after a near-collapse.
  • The fund sold most public stocks to Citadel to stabilize finances, slashing assets from $45B to about $10B.
  • Investors largely stayed, and Aschenbrenner vows to rebuild stronger, having learned from the crisis.

A Swift Rebound

Days after nearly collapsing, Leopold Aschenbrenner’s Situational Awareness fund has made a $400 million investment in a private company, according to a person familiar with the matter. The deal follows a $100 million commitment last month, signaling a rapid recovery after margin calls shook the firm.

Aschenbrenner, the fund’s founder, said in a statement that the fund survived and will rebuild stronger, having learned valuable lessons from the crisis. The purchase, which closed this week, underscores the fund’s renewed liquidity after a fire sale of public equities.

Selling to Stabilize

To shore up finances, the fund sold most of its public stock holdings to Citadel, a move that generated much-needed cash while preserving key private stakes. The asset base plummeted from roughly $45 billion at its peak in late July 2026 to about $10 billion today.

Despite the dramatic shrinkage, investors have largely remained supportive. “We’re in this for the long term,” said one limited partner, who asked not to be named. “The fund’s core thesis on AI remains intact.”

Focus on Private Markets

Situational Awareness, known for its concentrated bets on artificial intelligence, has pivoted further into private companies. The $400 million investment, which the fund declined to name, adds to its existing portfolio that includes a significant position in Anthropic, a leading AI startup.

“Private stakes are where we see the most compelling opportunities,” Aschenbrenner said in a memo to investors. “We’re doubling down on our strengths.”

Looking Ahead

The fund is now seeking additional capital and considering asset sales to ensure it can withstand future volatility. The near-term outlook hinges on restoring full liquidity and demonstrating performance recovery.

Aschenbrenner acknowledged the missteps that led to the crisis, saying the fund had been overly leveraged and insufficiently hedged. “We’ve taken corrective action,” he said. “The worst is behind us.”

Reached for comment, a Citadel spokesperson declined to discuss the specifics of the transaction, citing confidentiality agreements.