NCCapital

JPMorgan Chase has reportedly halted lending to Leopold Aschenbrenner’s hedge fund, Situational Awareness, after the young investor suffered what has been described as the largest loss in hedge fund history.

Aschenbrenner, who is in his mid-twenties, rose to prominence as one of the standout investors of the AI boom. His fund had built substantial positions tied to the rapid growth of artificial intelligence before a dramatic downturn resulted in losses totaling tens of billions of dollars.

The losses forced Aschenbrenner to sell a significant portion of his portfolio and reduce the amount of leverage used by the fund.

JPMorgan’s decision to cut off additional lending underscores the growing scrutiny facing Situational Awareness as it works to navigate the aftermath of its massive losses and reassess its investment strategy.