Ken Griffin’s Citadel has acquired a substantial portion of Situational Awareness’ $16 billion in public equity holdings. This move follows significant losses for Leopold Aschenbrenner’s firm amid an AI stock sell-off.

Citadel, a $71 billion multi-strategy hedge fund, finalized the deal within 24 hours, marking one of Wall Street's largest rushed stock transactions. Situational Awareness had urgently sought to sell assets or raise capital, holding talks with multiple investors. The firm also holds private stakes, including a $5 billion position in Anthropic, and will continue operating as a private investment entity.

Situational Awareness experienced rapid asset growth, achieving 439% returns from January to June. However, recent tech stock declines impacted its portfolio, prompting requests for additional capital from investors. The firm, with a small staff, had previously focused on concentrated AI stock positions and utilized significant borrowing to enhance returns. Goldman Sachs and JPMorgan Chase, its prime brokers, were involved in the negotiations.