JPMorgan cut off Situational Awareness lending after AI losses, FT reports

JPMorgan Chase has reportedly ceased its lending activities to Leopold Aschenbrenner's hedge fund, Situational Awareness, following significant losses incurred from its AI-related investments. The hedge fund was compelled to liquidate most of its public equities portfolio to Citadel after a widespread selloff in global chip stocks negatively impacted its leveraged positions. Other major banks like Goldman Sachs, Citigroup, and Bank of America continue their brokerage relationships with Situational Awareness.