The irony is that the WSJ had profiled Situational Awareness with a glowing story just 1-2 months ago. It reminds me of my old adage: "You don't want to read about your positions in a newspaper" - it paints a large target on your back.
I think it's mainly because if SA sold that much on the open market it would crash the stocks even further. Citadel is large enough to buy the entire book at a nice discount while still protecting the market from additional volatility and the fund's investors from even worse losses.
My 401k is all money market right now. I did that immediately after reading the HF blog post specifically about how GLM 5.2 helped them out when they had refusals from closedai. The value is in all in the future utilization of inference infrastructure profitably. The margins collapse when models are commodities and they really need to be. This is going to be one hell of a ride.
You can't predict when SPY is gonna correct or by how much. When capital leaves the AI trade it will just flow back into boring stocks. DJI is up MOM 4 months running.
The SA Story is essentially an AI researcher who left OpenAI's superalignment team, published a series of viral blog posts, raised capital for a hedge fund, and capitalized on the semiconductor boom over the last two years.
They used aggressive leverage and when the semiconductor sector corrected sharply, they faced catastrophic margin calls.
What's left is $10 billion in AUM primarily tied up in a $5 billion private stake in Anthropic and various other AI company holdings, the firm effectively operates as a venture capital fund rather than a traditional hedge fund now.
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[ 0.27 ms ] story [ 19.3 ms ] threadhttps://last10k.com/sec-filings/2045724
I guess it makes sense, wondering what Citadel will do with it...
They used aggressive leverage and when the semiconductor sector corrected sharply, they faced catastrophic margin calls.
What's left is $10 billion in AUM primarily tied up in a $5 billion private stake in Anthropic and various other AI company holdings, the firm effectively operates as a venture capital fund rather than a traditional hedge fund now.