Situational Awareness, the AI-focused hedge fund that recently had to sell off most of its public portfolio like a kid trading lunch money for a bag of chips, is still making big bets. This week, the fund invested $400 million into Source Foundry, a startup founded by Stanford researchers aiming to make chip manufacturing faster and cheaper, according to The Wall Street Journal. That brings its total investment in Source Foundry to a tidy $500 million.

Founded by Leopold Aschenbrenner, a former OpenAI researcher in his mid-twenties who had no trading experience when he launched the fund in 2024, Situational Awareness reportedly had strong early returns. But the fund faced steep losses in recent months as AI infrastructure stocks took a nosedive.

At the end of July, Situational Awareness sold off the majority of its public portfolio to Ken Griffin’s Citadel, although the fund held on to its Anthropic shares. Its assets under management reportedly fell from $20 billion to $10 billion - a 50% haircut that would make any barber proud.

On the bright side, Aschenbrenner didn’t let those setbacks get in the way of his wedding. Priorities, people.