😙 JPMorgan Cuts Fund Lending JPMorgan stopped lending to Situational Awareness after huge losses fro

😙 JPMorgan Cuts Fund Lending

JPMorgan stopped lending to Situational Awareness after huge losses from leveraged bets on the AI sector. The fund was forced to sell most of its public-stock holdings tied to Ken Griffin’s Citadel as semiconductor and AI-infrastructure shares plunged worldwide.

In July, the sell-off triggered a margin call. The portfolio fell 67% in one month, after gaining 439% through June.

Leopold Aschenbrenner, a former OpenAI researcher who launched the fund in 2024, told investors it had come “closer to an irreversible loss of capital than is acceptable to us,” while retaining faith in the portfolio’s fundamentals. Goldman Sachs, Citigroup, Bank of America and Clear Street remain brokers.

✅@futures