On Monday, Wall Street is reacting to a surprising new regulatory filing from former OpenAI researcher Leopold Aschenbrenner. His hedge fund, Situational Awareness LP, released its latest portfolio showing massive bets that could trigger a meltdown for the biggest tech companies in the world.
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Trade APLD with leverageThe fund manager opened massive put options to profit when stock prices fall. His main targets include industry leaders like Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO). He also placed similar bearish bets against Taiwan Semiconductor (TSM) and ASML Holding (ASML). Aschenbrenner believes that the stock market has completely overvalued graphics processing chips, prompting him to walk away from these popular tech giants before a major market correction occurs.
Situational Awareness Accumulates Energy Infrastructure Assets
The fund poured billions of dollars into the power grids and data centers needed to run advanced artificial intelligence models. Aschenbrenner expanded major equity investments in CleanSpark (CLSK), Riot Platforms (RIOT), and Applied Digital Corporation (APLD). He also bought shares of Intel (INTC) to balance his portfolio. He argues that electricity supply and physical land are the biggest roadblocks for the tech industry, making infrastructure companies the true long-term winners of the boom.
The ultimate takeaway from this filing reveals a clear shift in how big investors view the future of technology. Aschenbrenner is moving away from the short-term hype of microchip manufacturers because he expects their prices to fall heavily. Instead, he is locking in long-term investments in the basic electricity and data centers that keep the digital world running. For everyday investors, this means the massive profits in artificial intelligence might soon move away from chip makers and head straight into the utility companies that power the grid.