“AI Stock God” Trading Faces Drawdown, Seeking New Capital Support

According to Odaily, the Situational Awareness fund managed by "AI Stock God" Leopold Aschenbrenner accumulated a 439% gain by June 2026 but suffered heavy losses during the AI sector sell-off in July. The fund is now communicating with existing investors and lenders to seek additional capital and is offering some LPs the opportunity to purchase assets from its portfolio.

Sources indicate that this capital outreach appears more like a temporary measure rather than an organized new fundraising round. The fund previously used leverage through prime brokers at several major investment banks to amplify its AI trading exposure, which turned the market downturn into financial pressure.

In a letter to investors on July 24, Aschenbrenner acknowledged that the fund failed to avoid the market shock, noting that Asian markets were particularly hard hit. However, he believes this sell-off could represent the best buying opportunity since early 2025 and plans to open a new capital window on August 1, while viewing a potential Anthropic IPO as a catalyst for the second half of the year.

Disclosures show significant declines in some holdings in July, with Oracle and AMD falling about 20% for the month, and even larger drops for Nebius, Saronic AI, Bloom Energy, and SanDisk. The Nasdaq 100 index fell about 10% in July, while the Korea Composite Stock Price Index dropped roughly one-third.

Due to a lack of specific drawdown data for the fund, it is currently impossible to determine whether this capital raise is a passive replenishment driven by leverage pressure or an active opportunity to increase positions. However, market trends suggest it is closer to the former. If forced selling occurs, the deleveraging process could also create discount opportunities for assets whose fundamentals have not changed significantly.