Massive Bets on Micron and SanDisk! 'AI Stock God' Fund Exposes Pre-Collapse Positions Before Forced Sale to Citadel

Hedge fund Situational Awareness increased its holdings in semiconductor giants Micron (MU-US) and SanDisk (SNDK-US) during the second quarter, while reducing its put option positions against Nvidia (NVDA-US), Broadcom (AVGO-US), and AMD (AMD-US).

Regulatory filings show that as of June 30, the combined holdings in SanDisk and Micron reached $11 billion, accounting for approximately one-quarter of the fund's net assets at the time.

This US-based, highly leveraged fund was founded by former OpenAI researcher Leopold Aschenbrenner. However, due to a sharp decline in artificial intelligence (AI)-related stocks in July, the fund incurred severe investment losses and was forced to liquidate its publicly traded equity positions. Ultimately, most of the fund's AI-related holdings were acquired by Citadel Investment, led by renowned billionaire Ken Griffin.

During last month's intense sell-off of AI-related equities, Micron's stock price plummeted 29%, while SanDisk's shares crashed by 47%.

Meanwhile, Wall Street quantitative trading giant Jane Street disclosed to its lenders a single-month loss of approximately $15 billion in July, primarily due to the sharp correction in US AI-related stocks and the collapse of its investment vehicle, Situational Awareness, during the same period.

Despite the severe blow, Jane Street's year-to-date cumulative net trading revenue still exceeded $40 billion, surpassing the total annual revenue projected for 2025.