Ken Griffin's Citadel Takes Over AI Portfolio After Heavy Losses

Leopold Aschenbrenner and his Situational Awareness hedge fund just transferred most of their publicly traded stock positions to Citadel. This move follows some heavy losses on artificial intelligence bets. The fund tried to find other buyers and attract fresh cash before making the deal with Citadel.

The affected positions include shares in South Korean chipmaker SK Hynix and other infrastructure companies. These stocks dropped because the market started feeling skeptical about the sector. Even with those recent drops, the fund still holds private equity investments, including a stake in Anthropic.

Millennium Management also placed a bid for the portfolio during the sale. The fund launched about two years ago and grew quickly before hitting this rough patch. Traders are watching closely to see how this affects broader AI market sentiment and upcoming private tech catalysts.