What happened
Situational Awareness bought call options on AMD, Bloom Energy, CoreWeave, SK Hynix and SanDisk, with trades from late last week into this week, CNBC reported.
Why it matters
The fund's assets fell from a peak above $45 billion to roughly $10 billion in July, when borrowed money magnified falling prices and triggered cash demands.
What to watch
The new positions are call options, so losses are capped at the upfront cost but can vanish if the contracts expire worthless. Watch whether the money is surviving cash or fresh investor money.
WHO IT HITSThe trades matter to investors holding or trading the same AI-linked names — AMD, CoreWeave, Bloom Energy, SK Hynix and SanDisk — because a high-profile fund re-entering them can move attention and options pricing.
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Aschenbrenner built his investment business on a 2024 essay arguing AI could reach human-level intelligence by 2027. He backed companies supplying the computing capacity and electricity AI needs, which is why the new option trades land on names like AMD, CoreWeave and Bloom Energy. July showed the danger of that bet when borrowed money magnified falling share prices. The fund could not meet cash demands, and Citadel bought distressed holdings at a discount. Situational Awareness kept private investments, including Anthropic. The SEC later subpoenaed Wall Street banks over their dealings with the fund, an inquiry that carried no allegation of wrongdoing. Friday's trading in the familiar names was mixed, with Bloom up nearly 7% and AMD almost 3%, while SanDisk and CoreWeave fell. The stakes now hinge on whether these contracts pay off before their deadlines, and on whether a fund that just lost most of its assets can again be right about the AI trade.
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