Situational Awareness, star AI hedge fund that nearly imploded, now being probed by the SEC

🚨 Flash Sale 🚨 Get $100 off your Disrupt 2026 ticket Back by popular demand: Save up to $300 on Disrupt TechCrunch Desktop Logo TechCrunch Mobile Logo LatestStartupsVentureAppleSecurityAIAppsDisrupt 2026 EventsPodcastsNewsletters SearchSubmit Site Search Toggle Mega Menu Toggle Topics Latest Situational Awareness, the AI focused hedge fund that was Wall Street’s fleeting obsession, is having a very bad month. The company, led by twentysomething OpenAI alum Leopold Aschenbrenner, went all-in on a variety of AI investments and, for a period, enjoyed phenomenal growth. Then, at the end of July, a downturn in AI stocks erased billions of dollars in value at the firm. Now, federal regulators are reportedly probing the company as well. The New York Times reports that the Securities and Exchange Commission has been subpoenaing banks that did business with the hedge fund. The subpoenas focus on the banks that supervised the fund’s trading and that channeled funding to support it, the outlet says. The government reportedly warned the banks to “preserve any information” about the hedge fund, though it noted that Situational Awareness has not been accused of any wrongdoing. Situational Awareness did not respond to TechCrunch’s request for comment but told the Times that scrutiny of high-profile funds is to be expected, and that it would “cooperate to the fullest extent with any regulatory request.” The company, which very publicly hitched its wagon to AI’s star, may serve as a cautionary tale about the industry’s supposedly unstoppable trajectory. In less than 48 hours, your chance to save up to $300 on your tickets will end! Newsletters See More Subscribe for the industry’s biggest tech news Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility is your destination for transportation news and insight. Startups are the core of TechCrunch, so get our best coverage delivered weekly. Provides movers and shakers with the info they need to start their day. By submitting your email, you agree to our Terms and Privacy Notice. Situational Awareness, star AI hedge fund that nearly imploded, now being probed by the SEC Lucas Ropek 12 seconds ago In Brief Trump bought SpaceX shares two weeks after blockbuster IPO Sean O'Kane 3 hours ago TechCrunch Disrupt 2026 Amjad Masad, CEO and co-founder of Replit, joins the Disrupt Stage at TechCrunch Disrupt 2026  TechCrunch Events 4 hours ago X LinkedIn Facebook Instagram youTube Mastodon Threads Bluesky TechCrunchStaffContact UsAdvertiseSite Map Terms of ServicePrivacy PolicyRSS Terms of UseCode of Conduct OpenAIHugging FaceFlockStartup BattlefieldDisrupt 2026Tech LayoffsChatGPT © 2026 TechCrunch Media LLC.