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Home » Troubled hedge fund Situational Awareness invests $400 million in chip startup Source Foundry
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Troubled hedge fund Situational Awareness invests $400 million in chip startup Source Foundry

Editor-In-ChiefBy Editor-In-ChiefAugust 11, 2026No Comments1 Min Read
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Situational Awareness may have had to sell a large portion of its public portfolio last month, but the AI-focused hedge fund is still making big bets.

This week, the fund invested $400 million in Source Foundry, a startup founded by Stanford University researchers that aims to make chip manufacturing faster and cheaper, according to the Wall Street Journal. This brings the total investment in Source Foundry to $500 million.

Situational Awareness was founded by Leopold Aschenbrenner, a former OpenAI researcher in his mid-20s. When he launched the fund in 2024, he had no trading experience. After reportedly strong early returns, the fund faced significant losses in recent months as AI infrastructure stocks fell.

At the end of July, Situational Awareness sold the bulk of its public portfolio to Ken Griffin’s Citadel, but the fund continued to hold Anthropic shares. The company’s assets under management reportedly fell from $20 billion to $10 billion.

On the bright side, Aschenbrenner didn’t let those setbacks get in the way of her wedding.



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