This year alone, the "AI stock market guru" has "contributed" $200 million! He is Goldman Sachs' "largest prime brokerage client."

This year alone, the "AI stock market guru" has "contributed" $200 million! He is Goldman Sachs' "largest prime brokerage client."

Leopold Aschenbrenner, known in the market as the "AI stock god," founded the Situational Awareness Fund, which has become one of Goldman Sachs' most important prime brokerage clients in just two years.

According to the Financial Times, citing sources familiar with the matter, Goldman Sachs has earned more than $200 million in fees this year by providing financing services to Situational Awareness, making it the hedge fund client that contributes the most fees in Goldman Sachs' prime brokerage business.

This revenue is closely linked to Situational Awareness's previously aggressive leveraged strategy. However, this trading model is waning. In July, Aschenbrenner informed investors that it would stop using borrowing to amplify investment bets. As financing needs decrease, Goldman Sachs will also receive less in fees from the fund in the future.

Meanwhile, the sharp correction in AI stocks quickly backfired on high-leverage strategies. After suffering billions of dollars in losses, Situational Awareness sold most of its public market positions, previously valued at approximately $16 billion, to Ken Griffin's Citadel.

The plunge in AI stocks triggered a leverage backlash, with Goldman Sachs remaining a key financier.

Following a rapid sell-off of AI-related stocks this year, Situational Awareness's highly leveraged positions quickly amplified losses. With large positions being sold off, Aschenbrenner began to readjust his trading strategy.

Faced with huge losses, Aschenbrenner said he would "fight another day" and "learn the necessary lessons." Earlier this month, he had already begun rebuilding his technology stock positions.

Financing relationships have also diverged. Goldman Sachs remains one of Situational Awareness's core lenders, and their partnership has not been interrupted; however, according to a previous report by the Financial Times, JPMorgan Chase has stopped providing loans to the fund after it suffered losses.

Meanwhile, Aschenbrenner recently began a trading relationship with Clear Street, a brokerage firm focused on the technology sector, further expanding its funding channels. This represents a shift in the fund's previous strategy of relying on high leverage to drive growth, as it ceases using borrowing to amplify its bets.

Reaching $20 billion in two years, AI bets once yielded returns of over 400%.

Aschenbrenner, 24, is a former OpenAI researcher with no traditional trading experience. In 2024, he founded Situational Awareness with hundreds of millions of dollars in assets, and subsequently made a large bet on the AI sector, achieving a cumulative return of over 400% at one point, and rapidly expanding its assets under management to over $20 billion.

Before founding his fund, Aschenbrenner had already gained attention in Silicon Valley for his predictions on AI trends. In 2024, he published a 165-page article titled "Situational Awareness," predicting that artificial intelligence would develop rapidly in the coming years, earning him the title of "Nostradamus of AI" and accumulating influence for his subsequent fund establishment and fundraising efforts.

As the fund's size rapidly expanded, its trading and financing needs also grew accordingly. Borrowing funds to amplify positions allowed Situational Awareness to further amplify returns in AI-driven market conditions, quickly making it a major client in Wall Street's prime brokerage business.

However, this model also amplifies downside risks when the AI market turns. As Aschenbrenner actively reduces leverage, the huge financing income Goldman Sachs obtained from this fund may be difficult to sustain.

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