Situational Awareness, star AI hedge fund that nearly imploded, now being probed by the SEC
techcrunch ·
Situational Awareness, an AI-focused hedge fund led by former OpenAI employee Leopold Aschenbrenner, is reportedly being investigated by the U.S. Securities and Exchange Commission. The fund experienced rapid growth after making extensive investments in AI, but a downturn in AI stocks at the end of July wiped out billions of dollars in value. According to The New York Times, the SEC has subpoenaed banks that oversaw the fund’s trading and provided financing. The subpoenas reportedly instruct the banks to preserve information about Situational Awareness, although the fund has not been accused of wrongdoing. Situational Awareness said regulatory scrutiny of prominent funds is expected and pledged to cooperate with any official requests. The fund’s troubles could highlight the risks of assuming that the AI industry’s growth will continue without interruption.
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