NVDA, NBIS, SKHY, SNDK Stock Losses Reportedly Force Ex-OpenAI Researcher’s $20B Fund To Seek Capital

According to a Financial Times report, the Situational Awareness hedge fund reportedly told investors it was up 439% through June and viewed the market correction as a buying opportunity.

• Former OpenAI researcher Leopold Aschenbrenner's $20 billion hedge fund, Situational Awareness, has reportedly approached investors and lenders for fresh capital.
• The reported fundraising discussions follow a sharp pullback across AI infrastructure and semiconductor stocks over the past month.
• The fund's largest disclosed holdings include the VanEck Semiconductor ETF, Nvidia, Oracle, Broadcom, and AMD, as well as AI infrastructure companies such as CoreWeave and Core Scientific.

Shares of AI-linked companies, including Nvidia (NVDA), Oracle (ORCL), Micron Technology (MU), Advanced Micro Devices (AMD), Nebius Group (NBIS), and SanDisk (SNDK), have tumbled over the past month, reportedly prompting Situational Awareness, a $20 billion hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, to seek additional capital after suffering losses tied to the sector-wide selloff.

According to a Financial Times report, Situational Awareness (SALP) has approached existing investors and lenders to raise fresh capital. The report said some investors have also been offered the opportunity to purchase assets directly from the fund's portfolio, though one person familiar with the discussions described the process as "ad-hoc" rather than a formal fundraising effort.

Aschenbrenner launched the AI-focused hedge fund in 2024 after leaving OpenAI, building its strategy around high-conviction investments across artificial intelligence infrastructure, semiconductor companies, and data center operators.

Chip Stock Pullback Hits Fund's Largest Positions

Its latest 13F filing showed Situational Awareness held 42 disclosed holdings worth about $13.68 billion, excluding cash and other assets. The portfolio is anchored by the VanEck Semiconductor ETF (SMH), Nvidia, Oracle, Broadcom (AVGO), and AMD, alongside AI infrastructure names including CoreWeave (CRWV), Core Scientific (CORZ), Bloom Energy (BE), IREN (IREN), and Applied Digital (APLD).

Over the past month, SanDisk and Nebius have been among the fund's worst-performing stocks. SNDK stock has fallen by over 55%, but was climbing higher in pre-market trade on Thursday. On Stocktwits, retail sentiment around the firm remained in ‘extremely bullish’ territory over the past day. 

NBIS stock has dropped over 46%, but was rising by around 4.7% in pre-market trade. On Stocktwits, retail sentiment around the Nvidia-backed neocloud rose to ‘bullish’ from ‘neutral’ territory over the past day. 

CRWV stock climbed by over 2% in pre-market trade, but has fallen nearly 40% so far this month. APLD stock was up 3%, recovering from a drop of over 37%, while MU stock saw a similar month-to-date drop and continued to edge lower in pre-market trade.

The largest AI companies have held up comparatively well during the same period. NVDA stock declined about 5%, while AVGO stock is down roughly 2%.

Another drag has been the fund's stake in SK Hynix (SKHY). After backing the company's U.S. ADR listing earlier this month as a cornerstone investor, SKHY stock has slid about 15% from its $149 debut price to $126.79 as of Wednesday’s close.

Why Citrini Thinks Investors Won't Walk Away

Not everyone believes the capital raise reflects broader concerns about the fund. In a note published on X, Citrini Research stated the investor base is likely to treat the recent decline as a buying opportunity rather than a reason to reduce exposure.

"I think it's probable the LPs will BTFD [buy the dip]. Situational Awareness is going to get the money they're asking for," the firm wrote. It added that once new capital is raised, the fund could unwind short-term hedges and redeploy fresh capital into what it called "the best buying opportunity since April 2025."

Citrini also said that investors who backed Situational Awareness because of its long-term AI thesis are unlikely to abandon that view following a sharp correction in AI stocks.