Embattled AI hedge fund invests $400M in chip startup Source Foundry

Situational Awareness, an AI-focused hedge fund founded by Leopold Aschenbrenner, a former OpenAI researcher with no prior trading experience, invested $400 million into Source Foundry, a startup founded by Stanford researchers aiming to make chip manufacturing faster and cheaper. This brings the fund's total investment in Source Foundry to $500 million. The fund had recently faced steep losses amid the decline in AI infrastructure stocks, and at the end of July, it sold off the majority of its public portfolio to Ken Griffin's Citadel, though it retained its Anthropic shares. Its assets under management reportedly fell from $20 billion to $10 billion. Despite these setbacks, Aschenbrenner reportedly went ahead with his wedding.