AI TRADE RESET? Once known as an “AI prophet,” Leopold Aschenbrenner is now facing one of Wall Street’s toughest lessons. His AI-focused hedge fund Situational Awareness came under significant pressure during the AI stock sell-off, selling a large portion of its public equity positions, with parts of the portfolio acquired by Citadel. The fund previously gained attention for its heavy exposure to AI infrastructure stocks. But as the market reassesses: • AI valuations • Returns on compute investments • Semiconductor growth expectations The risks of highly leveraged strategies are becoming increasingly visible. Markets reward those who identify the right direction, but they rarely forgive poor position management. The AI narrative is far from over. But investors are entering a new phase: From believing in the future, to validating the value. #XBIT# #AI# #Markets#