SEC probes Situational Awareness: When a 24-year-old plays with billions
Turns out running a massive hedge fund based on AI vibes isn't as foolproof as a college essay makes it sound.
So, Leopold Aschenbrenner, a 24-year-old former OpenAI researcher, decided to turn his personal essay about the future of tech into a multi-billion dollar hedge fund called Situational Awareness. Everything was going great until the market had a little tantrum in July.
The fund saw its value crater from $45 billion to a mere $10 billion in a heartbeat. Now, the SEC is knocking on the doors of banks like Goldman Sachs and JPMorgan Chase, asking for every scrap of paper they have on these trades. It’s not technically an investigation into wrongdoing yet, but regulators tend to get twitchy when $35 billion in value evaporates overnight.
To stop the bleeding, the kid had to dump his portfolio to Citadel at a massive discount. Naturally, the stocks he sold—like SK Hynix—immediately bounced back. It is a bold strategy to lose billions while accidentally handing the winning plays to Ken Griffin.
Nothing says "the future of finance" like being subpoenaed before your first grey hair appears.
Source: CNBC
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