Symbolic imageThe Wall Street Journal has now spelled out the leveraged strategy behind the AI fund Situational Awareness, whose assets fell by more than two thirds in a month; it puts Jane Street's loss at about $15 billion.
Situational Awareness is a US hedge fund run by Leopold Aschenbrenner that invests around artificial intelligence, a bet whose fortunes track the technology stocks that surged earlier this year. The trading firm Jane Street is exposed to it. Reporting so far comes from the Wall Street Journal and the South China Morning Post.
The Wall Street Journal on Saturday described the risk-amplifying strategy that led to heavy losses at the fund Situational Awareness. According to the report, the geared-up bets cost Jane Street about 15 billion dollars.
The Wall Street Journal reports that Jane Street lost about $15 billion after trouble at the AI fund Situational Awareness. Its assets fell by more than two thirds within a single month.