Hedge Fund’s Near Collapse Lays Bare Risks of Borrowing to Bet on A.I.

kept by eddie oct 01

The near‑collapse of AI‑focused hedge fund Situational Awareness reveals the dangers Wall Street banks face when lending billions to speculative AI bets.

Exclusive | How Wall Street Sussed Out That Situational Awareness Was On the Ropes - WSJ
Wall Street traders sensed trouble in Leopold Aschenbrenner’s Situational Awareness hedge fund after it sought to sell its Anthropic stake amid margin calls and falling AI stocks.
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Floundering A.I. ‘Nostradamus’ Hedge Fund Is Rescued by Rival
Situational Awareness, a high‑flying AI hedge fund founded by a 24‑year‑old, has been rescued by rival Citadel, whose founder Kenneth Griffin facilitated the bailout.
also on Situational Awareness, #finance, #startups, #ai