Key facts
- Situational Awareness invested $400 million in chip startup Source Foundry.
- The total investment in Source Foundry now reaches $500 million.
- Source Foundry was founded by Stanford researchers.
- Situational Awareness experienced significant losses in AI infrastructure stocks.
- The hedge fund sold most of its public portfolio in late July.
Despite recent significant losses in AI infrastructure stocks and the sale of most of its public portfolio, the AI-focused hedge fund Situational Awareness has invested an additional $400 million into chip startup Source Foundry. This brings the fund's total investment in Source Foundry to $500 million. Source Foundry, founded by Stanford researchers, aims to accelerate and reduce the cost of chip manufacturing.
Situational Awareness, launched in 2024 by Leopold Aschenbrenner, a former OpenAI researcher, experienced strong early returns but faced steep declines in recent months. At the end of July, the fund reportedly sold the majority of its public holdings to Ken Griffin's Citadel, reducing its assets under management from $20 billion to $10 billion. The fund did retain its shares in Anthropic.