AI-focused hedge fund Situational Awareness LP, founded by former OpenAI employee Leopold Aschenbrenner, has disclosed a sharply expanded portfolio of semiconductor-related derivatives alongside selective equity bets in AI infrastructure companies, according to a report by the Globe and Mail.
They report cities the firm’s Q1 2026 regulatory filing as showing that the fund significantly increased its exposure to AI-linked volatility through large put option positions across a range of major semiconductor and cloud infrastructure names, including Nvidia, Broadcom, Oracle, AMD, Micron, ASML, Intel, Corning and Taiwan Semiconductor Manufacturing Co.
Among the most notable positions were put options tied to Nvidia worth more than $1.5 billion, alongside bearish exposure exceeding $2 billion linked to the VanEck Semiconductor ETF, underscoring a substantial hedge against or potential downside view on the broader AI chip complex.
At the same time, the fund added to selected long positions in AI infrastructure and digital energy plays, including CleanSpark, Riot Platforms, Applied Digital, IREN and CoreWeave, signalling a more nuanced positioning across the AI ecosystem rather than a uniform directional bet.
The portfolio also included new call option positions in names such as Sandisk and Taiwan Semiconductor, further highlighting a mixed derivatives strategy combining both upside participation and downside protection across key semiconductor supply chain assets.
During the quarter, Situational Awareness exited several prior holdings, including Cipher Mining, Coherent, EQT, Hut 8 and Tower Semiconductor, reflecting a broader portfolio reshuffle compared with its prior disclosure period, when the fund held relatively limited options exposure.
The latest positioning marks a notable shift in strategy from the previous quarter, when the fund’s disclosed derivatives book was significantly smaller, suggesting an accelerated focus on macro-style AI sector hedging and thematic positioning.
