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

Situational Awareness is an AI-focused hedge fund led by a twentysomething OpenAI alum that initially experienced significant growth but lost billions in value during an AI stock downturn at the end of July. The Securities and Exchange Commission is now investigating the fund by subpoenaing banks that supervised its trading and provided funding support, though the fund has not been accused of wrongdoing. The fund's collapse represents a cautionary tale about betting heavily on AI's trajectory, as it went from being Wall Street's focus of attention to facing regulatory scrutiny and major financial losses within a short period.