Leopold Aschenbrenner Returns to AI Bets After Massive Losses

Leopold Aschenbrenner is back in the market. The former OpenAI researcher recently moved his hedge fund, Situational Awareness, into call options for companies like AMD, Bloom Energy, CoreWeave, and SanDisk. This move follows a rocky summer where his fund saw its assets drop from over 45 billion dollars to roughly 10 billion dollars due to high leverage and falling share prices.

His strategy centers on the belief that artificial intelligence will reach human level intelligence by 2027. To support this goal, he is focusing on businesses that provide the essential hardware and electricity needed to power large scale AI operations. By using call options, he limits his potential losses to the initial purchase price, a change in tactics compared to the borrowed money that fueled his previous losses.

Market watchers are paying close attention to these trades. While some of the companies saw gains following the news, others struggled in recent trading sessions. There is currently no word on whether this capital comes from leftover cash or fresh investment from his backers.

Traders should watch how these option positions play out as deadlines approach. Because call options have expiration dates, the fund faces significant pressure to see results quickly. This story highlights the extreme volatility involved when betting on the rapid expansion of the AI sector.