The Truth About Situational Awareness: Ken Griffin, Citadel & the AI Bubble

In Episode 347, Chris goes solo and pulls apart one of the wildest Wall Street stories of the year: the near-collapse of Situational Awareness, the AI-focused hedge fund launched by 25-year-old prodigy Leopold Aschenbrenner. What began as a multibillion-dollar bet on the future of artificial intelligence quickly became a masterclass in concentration risk, leverage and what happens when Silicon Valley confidence runs headfirst into experienced Wall Street operators. From FTX and OpenAI to a brutal margin call, a massive portfolio sale to Ken Griffin’s Citadel and a suspiciously well-timed rebound in the very stocks that had just been crushed, Chris walks through the timeline, separates the facts from the theories and asks the question nobody wants to answer: was this simply reckless risk management—or did one of the smartest young minds in AI get completely outplayed?

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🔗 Resources:

The loss of Situational Awareness (The Verge)

Meta’s New AI strategy (Bloomberg TV via Instagram)

Don’t use leverage an ability to weather the dip (Yahoo! Finance via Instagram )

Bubble is much bigger (Bloomberg TV via Instagram)

Equity issuance problem (ProfG Markets via Instagram)

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