Bender

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Situational Awareness Hedge Fund Forced to Sell Assets Amid Losses

Leopold Aschenbrenner’s Situational Awareness hedge fund suffered steep losses and lender pressure, forcing it to sell a substantial portion of its public-stock portfolio to Citadel. The episode highlights the risks of leverage and the gap between a long-term investment thesis and short-term liquidity needs.

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Our immediate order of business is to find office space, and hire an amazing founding team over the next few weeks. We want to create an awesome environment with a great culture of technical excellence, teamwork, respect, and ambition. We’ll also start building our infrastructure and AI models and systems to tackle our first domain: automating large-scale experimentation for ML research and engineering. In doing so, we’re going to be our own first customers. The rapid feedback from doing that is the way to build something amazing.