Situational Awareness, a hedge fund run by a 24-year-old hailed as “Nostradamus of AI”, swelled to $45 billion in assets until a mix of highly leveraged bets, short sellers and a market swoon threw it into crisis.

On today’s Big Take podcast, Bloomberg’s Katherine Burton and Hema Parmar join Sarah Holder to discuss how risky bets led the fund to the brink and whether the episode speaks to broader vulnerabilities among hedge funds investing in AI.

Read more: 
The 24-Hour Race to Salvage Situational Awareness’ AI Bets
Bloomberg Opinion: Hedge Fund’s 439% Return Should Have Been the Warning
Situational Awareness Returns to Investing With $400 Million Bet

Listen to Money Stuff Podcast: No Kiddie Pool 

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Hosted by Sarah Holder; Produced by Rachael Lewis-Krisky; Reported by Katherine Burton and Hema Parmar; Edited by Jeffrey Grocott. Fact-checking by Victor Swezey and Laura Newcombe; Engineering by Sean Carter. Senior Producer: Naomi Shavin; Deputy Executive Producer: Julia Weaver. Executive Producer: Nicole Beemsterboer.

Situational Awareness, a hedge fund run by a 24-year-old hailed as &ldquo;Nostradamus of AI&rdquo;, swelled to $45 billion in assets until a mix of highly leveraged bets, short sellers and a market swoon threw it into crisis.
On today&rsquo;s Big Take podcast, Bloomberg&rsquo;s Katherine Burton and Hema Parmar join Sarah Holder to discuss how risky bets led the fund to the brink and whether the episode speaks to broader vulnerabilities among hedge funds investing in AI.
Read more:&nbsp;
<ul>
<li><a href="https://www.bloomberg.com/news/articles/2026-07-30/the-24-hour-race-to-salvage-situational-awareness-souring-bets">The 24-Hour Race to Salvage Situational Awareness&rsquo; AI Bets</a></li>
<li><a href="https://www.bloomberg.com/opinion/articles/2026-08-03/situational-awareness-439-return-should-have-been-a-warning">Bloomberg Opinion: Hedge Fund&rsquo;s 439% Return Should Have Been the Warning</a></li>
<li><a href="https://www.bloomberg.com/news/articles/2026-08-05/situational-awareness-returns-to-investing-with-400-million-bet">Situational Awareness Returns to Investing With $400 Million Bet</a></li>
</ul>
Listen to <a href="https://www.bloomberg.com/news/audio/2026-07-31/money-stuff-podcast-no-kiddie-pool">Money Stuff Podcast: No Kiddie Pool</a>&nbsp;
We have a special Bloomberg subscription offer for podcast listeners at <a href="https://www.bloomberg.com/subscriptions/podcasts">Bloomberg.com/podcastoffer.</a>
Hosted by Sarah Holder; Produced by Rachael Lewis-Krisky; Reported by Katherine Burton and Hema Parmar; Edited by Jeffrey Grocott. Fact-checking by Victor Swezey and Laura Newcombe; Engineering by Sean Carter. Senior Producer: Naomi Shavin; Deputy Executive Producer: Julia Weaver. Executive Producer: Nicole Beemsterboer.

The Big Take from Bloomberg News brings you inside what’s shaping the world's economies with the smartest and most informed business reporters around the world. The context you need on the stories that can move markets. Every afternoon.

The Big Take from Bloomberg News brings you inside what’s shaping the world's economies with the smartest and most informed business reporters around the world. The context you need on the stories that can move markets. Every afternoon.

Big Take

The Situation at Situational Awareness

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/d01c2fe8-15b4-4f42-b079-b49e0157ad46/transcript