EL7.AI
StocksMedium•1 August 2026•
1 min read

Aschenbrenner's Fund Loses 67% on Leveraged AI Bets

Key Facts

1Leopold Aschenbrenner's hedge fund reportedly lost 67% in July due to heavily leveraged bets on AI stocks.
2Severe losses triggered margin calls, forcing asset sales to Citadel and a near-sale of the fund's stake in Anthropic.

Amid rising volatility in the technology sector, Leopold Aschenbrenner's hedge fund reportedly suffered a massive 67% drawdown in July due to heavily leveraged bets on AI stocks. According to reports, these severe losses triggered margin calls, forcing the firm into emergency asset liquidations to meet liquidity requirements.

The financial strain forced the fund to sell assets to Citadel and prompted a near-sale of its stake in Anthropic. Aschenbrenner likened the experience to a "bank run" and partially blamed short sellers for exacerbating the collapse, leading the fund to ultimately remove all leverage from its portfolio to stabilize operations.

Looking ahead, the market remains sensitive to broader catalysts such as the Fed Interest Rate Decision, which was maintained at 3.75% as of July 29, 2026, influencing tech valuations.