Bold predictions are somewhat typical for those in the AI field.
Leopold Aschenbrenner, often dubbed the “Nostradamus of AI,” took things a step further when he allegedly told his fiancée that he would one day buy her not a yacht or mansion, but an entire galaxy.
This 24-year-old German prodigy recently married the chief of staff for Anthropic CEO Dario Amodei.
Just prior to the wedding, his heavily leveraged hedge fund experienced a dramatic collapse, plummeting 67% by the end of July and forcing him to sell off much of its stock holdings to Ken Griffin’s Citadel.
According to the Wall Street Journal, Aschenbrenner finalized the emergency sale early Thursday morning before traveling to Carmel, California, for his wedding that weekend.
During the wedding, one speaker reportedly expressed gratitude to Griffin for making the situation possible, while another guest admired Aschenbrenner’s ambitious promise to someday acquire a galaxy for his new wife.
Interestingly, buying a piece of the universe has been on Aschenbrenner’s mind for quite some time, often jokingly mentioned to friends who were, let’s say, a bit skeptical.
His career took off with a position for the FTX Future Fund, and he and his now-wife, Avital Balwit, spent time at a luxurious Bahamas resort where many FTX executives resided.
Documents from Bankman-Fried’s trials reveal that Aschenbrenner participated in numerous group chats with Bankman-Fried, including discussions about effective altruism and meetings with key members of the FTX circle.
Aschenbrenner resigned along with his colleagues when FTX filed for bankruptcy in November 2022, citing a fallout with Bankman-Fried over disagreements related to biosecurity grants.
Just a couple of years later, he launched Situational Awareness and grew it into a $45 billion hedge fund, despite having nearly no investing experience prior to this. His swift rise was truly remarkable.
This Berlin-raised whiz entered Columbia University at just 15 and graduated as valedictorian by 19, becoming actively involved in the effective altruism movement and its concerns about the risks of advanced AI.
After the collapse of FTX, Aschenbrenner joined OpenAI in 2023, where his warnings about potential espionage concerns sparked some controversy, leading to a memo criticizing the company’s security measures.
He later claimed that raising such concerns was considered inappropriate and even racist by some within OpenAI, though the company disputes this.
His tenure at OpenAI didn’t end well. He was eventually terminated for sharing what executives regarded as sensitive information with an influential figure in the effective altruism movement. Aschenbrenner maintains that the information was not confidential and suggests other motivations for his dismissal, but OpenAI disagrees with his account.
According to an OpenAI spokeswoman, Aschenbrenner was “not fired for raising security concerns.” He chose to forgo nearly $1 million in equity to avoid signing a nondisclosure agreement.
Shortly after, he made another significant move into the AI space. In 2024, Aschenbrenner released a lengthy manifesto titled “Situational Awareness,” predicting the emergence of superintelligent AI and suggesting that this technology could bring about one of the most intense periods in human history.
He even used this thesis to shape his investment strategy.
At just barely 21 and without previous investing experience, Aschenbrenner attracted major backers, including trading giant Jane Street and the co-founders of Stripe.
His hedge fund aggressively invested in various sectors within the AI ecosystem, including semiconductor and software companies, while also acquiring stakes in private firms.
However, Situational Awareness executed a risky strategy by borrowing approximately $3 for every $1 of its capital, leaving the fund vulnerable when tech stocks fell sharply in July.
As the market dipped, Aschenbrenner faced mounting pressure as lenders called for margin payments, and at one point considered selling off a $3.5 billion stake in Anthropic.
Ultimately, he opted for an emergency deal, selling most of his public investments to Citadel at a bargain price.
This transaction proved beneficial for Citadel, as the stocks they acquired subsequently rebounded, greatly enhancing their flagship fund’s performance.
In the meantime, Situational Awareness faced a significant downturn throughout July.
The consequences hit backers hard, with Jane Street reporting a staggering $15 billion loss for the month, its worst performance ever.
Now, federal regulators are investigating Situational Awareness’s trading actions, though no formal allegations have been made against the firm.
In response, Situational Awareness has assured that it will fully cooperate with any regulatory inquiries.
The Post has sought comments from Aschenbrenner.
