SEC probes Situational Awareness fund

The Securities and Exchange Commission is reportedly subpoenaing banks that supervised and financed Situational Awareness, the AI-focused hedge fund whose public holdings fell from about $45 billion to $10 billion in July, according to TechCrunch’s report on the inquiry. The fund has not been accused of wrongdoing, and the subpoenas reportedly ask banks to preserve information while regulators examine the near-collapse. Capital providers should file the new scrutiny beside the archive’s analysis of AI-compute financing risk: a correct long-term AI thesis can still become a short-term liquidation event when leverage and correlated infrastructure bets meet margin calls.