The Prof G Pod with Scott Galloway

Podbit · The Prof G Pod with Scott Galloway

The Week: How Leverage Broke the AI Trade

Explore episode Aug 7, 2026
Business
Leopold Aschenbrenner: AI Jesus Falls to Earth

The Week: How Leverage Broke the AI Trade · Aug 7, 2026 Business

Situational Awareness, the AI hedge fund run by 24-year-old Leopold Aschenbrenner, was up 439% for the first half of 2026 and had swelled to $45 billion. Then a 5x leverage position triggered margin calls, and the fund was forced to liquidate its entire public equity portfolio in a fire sale to Citadel — leaving it with $10 billion.

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