Situational Consciousness, the AI targeted hedge fund that was Wall Road’s fleeting obsession, is having a really unhealthy month.
The corporate, led by twentysomething OpenAI alum Leopold Aschenbrenner, went all-in on quite a lot of AI investments and, for a interval, loved phenomenal development. Then, on the finish of July, a downturn in AI shares erased billions of {dollars} in worth on the agency. Now, federal regulators are reportedly probing the corporate as effectively.
The New York Occasions stories that the Securities and Change Fee has been subpoenaing banks that did enterprise with the hedge fund. The subpoenas give attention to the banks that supervised the fund’s buying and selling and that channeled funding to help it, the outlet says.
The federal government reportedly warned the banks to “protect any data” concerning the hedge fund, although it famous that Situational Consciousness has not been accused of any wrongdoing.
Situational Consciousness didn’t reply to TechCrunch’s request for remark however instructed the Occasions that scrutiny of high-profile funds is to be anticipated, and that it will “cooperate to the fullest extent with any regulatory request.”
The corporate, which very publicly hitched its wagon to AI’s star, could function a cautionary story concerning the trade’s supposedly unstoppable trajectory.
