Jane Street Lost $15 Billion in July on Situational Awareness Exposure as AI Stocks Slumped

Jane Street, the high-frequency trading giant, suffered a roughly $15 billion loss in July after the AI market selloff hammered its exposure to Situational Awareness, Leopold Aschenbrenner's hedge fund, and other technology positions, according to Reuters and the Financial Times. Situational Awareness, which had grown to as large as $45 billion, plunged 67% in July as AI infrastructure investments such as SK Hynix collapsed in value, forcing the fund to sell most of its public equities book to meet margin calls from prime brokers including Bank of America, Goldman Sachs, and JPMorgan Chase, with much of the portfolio offloaded to Ken Griffin's Citadel. Despite the July setback, Jane Street has still generated more than $40 billion in trading revenue so far this year, underscoring the scale of its broader business even as the single-month loss stands as one of the largest trading hits the firm has absorbed.