Leopold Aschenbrenner’s AI-focused hedge fund Situational Awareness faced acute pressure in late July 2026 after steep losses on leveraged semiconductor and infrastructure positions triggered margin calls, forcing a fire sale of most of its roughly $16 billion public equity book to Citadel and shrinking assets under management from a $45 billion peak to around $10 billion. The firm sent an investor letter inviting fresh commitments starting August 1, positioning the drawdown as a buying opportunity, yet credible reporting indicated limited uptake amid reputational damage. It has since deployed $400 million more into chip-manufacturing startup Source Foundry and retained major private holdings like its Anthropic stake, but an ongoing SEC probe into its trading and financing arrangements has added uncertainty. These dynamics have kept trader consensus heavily weighted against a confirmed influx of qualifying new outside capital by the August 31 resolution date.