Hedge Funds
The First Great AI Fund Blowup Just Became an SEC Investigation
The AI Prism Admin
The SEC has subpoenaed Goldman Sachs, JPMorgan, Citigroup and Bank of America over their role in the near-collapse of AI hedge fund Situational Awareness, which plunged from $45 billion to $10 billion in weeks. It is the first big AI-finance blowup to reach the enforcement stage, and the story it tells is about leverage, not the AI itself.
