Jane Street took a $15 billion hit in July tied to its stake in AI-focused hedge fund Situational Awareness and long positions in technology stocks that declined during a broad market selloff, according to Reuters. July marked the first negative trading revenue month for Jane Street since 2016. The firm said hedges provided little protection because losses in AI stocks accumulated throughout the month rather than in a sudden drop, and long bets on Asian stocks outside the AI sector also turned against it. Despite the setback, Jane Street's cumulative trading revenue for the year had climbed past $40 billion, surpassing the $39.6 billion it booked across all of 2025. Since the losses, Jane Street has wound down a substantial share of exposure in the positions that drove the damage and grown more cautious across other parts of its book. Situational Awareness, run by former OpenAI researcher Leopold Aschenbrenner, lost roughly $35 billion in assets after margin calls from prime brokers forced a distressed sale of its publicly traded holdings to Ken Griffin's Citadel, with the fund's assets dropping from a peak of $45 billion at the start of July to roughly $10 billion after Citadel acquired its leveraged positions, including SK Hynix and CoreWeave, at below-market prices.
SK Hynix Inc
CoreWeave, Inc. Class A Common Stock