❗️An AI superstar just had a $13 billion meltdown

❗️An AI superstar just had a $13 billion meltdown Former OpenAI researcher Leopold Aschenbrenner built one of Wall Street’s hottest AI hedge funds, growing it from just a few hundred million dollars to over $20 billion in only two years. Investors treated him like an AI oracle, piling into the same trades he made. Then July happened. A sharp selloff in AI stocks crushed the fund, wiping out around 67% of its value in a single month. The biggest culprit? Leverage. Borrowed money supercharged returns while AI stocks were soaring, but when prices reversed, margin calls forced the fund to sell assets at the worst possible time. To stay afloat, the firm rushed to sell most of its public stock portfolio to Citadel during the market panic. It also tried to offload $3.5 billion worth of its Anthropic stake to a group led by Greenoaks and Sequoia Capital, but after reaching an agreement, the deal unexpectedly fell apart the very next day. For now, the Anthropic shares remain untouched, but the fund has eliminated the leverage that fueled both its meteoric rise and its dramatic collapse. In a letter to investors, Aschenbrenner admitted the firm had let them down, while also pointing to aggressive short sellers who had targeted many of its positions. Source. @aipost 🏴