The AI Trade's Second Chance at Redemption The sudden collapse of Situational Awareness hedge fund sent shockwaves through the markets last week, leaving many wondering if the AI trade was finally on its last legs.
However, as the dust settles, it becomes clear that this was never just about one fund or its botched bets – it was a broader reckoning with the AI sector itself.
The truth is, Situational Awareness's downfall was only the tip of the iceberg. The fund's reckless use of borrowed money and ill fated bets on hardware names had been a ticking time bomb for months.