Searchable transcript of Inside Citadel's $16B Takeover of Leopold Aschenbrenner's AI Empire — 20VC with Harry Stebbings (02:33). Search for a phrase, then click its timestamp to jump straight to that moment in the video.
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00:00 This guy, Ken Griffin, just made $1.5 billion in a few days by buying situational awareness fund on the cheap. How did he do it? Well, the Citadel founder allegedly use media, Fed signals, and perfect timing and walk away with a $16 billion AI book at a very heavy discount. Leo Ashenbrer's situational awareness fund went parabolic. insane numbers from launch in 2024 with just $225 million to over $45 billion at its peak.
00:29 It was an incredible run, but it was pretty concentrated and with four leverage bets on AI infrastructure, it was a risky trade to make, but it worked. Up 439% through the end of June, Leo, our favorite wonderkind, printing millions and millions and millions in carried interest. The setup was perfect though for months. Ken Griffin had been all over CNBC, Bloomberg and interviews hammering sticky inflation, strong jobs, why the Fed might need to raise rates instead of cut.
01:02 Then perfect timing. Writers Leo's book was at its most vulnerable. Griffin publicly called for the Fed to shock the market today on purpose with a surprise rate hike rather than a telegraphed September move. The Fed is a prisoner of the market expectations, he said. Media then runs with the hawkish narrative. Yields they spike. Rate sensitive AI power and growth stocks get pummeled.
01:27 LEO's concentrated long positions drop, wait for it, 30 to 50% in days. The fund is down 67% in July. Margin calls they hit instantly. The FT breaks the story. Total panic. No time to raise capital. Citadel, Kang Griffin. Millennium, another big firm. Jane Street, another monster firm. They all bid overnight, but Voldemort, I mean, Ken Griffin wins.
01:56 They buy the bulk of the entire $16 billion public equity book in one clean block trade at a massive discount near the absolute bottom. Prime brokers facilitate to avoid a really messy liquidation. Days later, many of those exact names rip 15 to 30%. Ken Griffin up $1.5 billion roughly expected to be slightly more. That is insane. Now Leo keeps the crown jewel but hand it to the one and only Ken Griffin. That is one of the most sensational trades we've seen in modern finance.
The Fed is a prisoner of the market expectations.
A concentrated fund with four leveraged bets on AI infrastructure that rose sharply before falling 67% in July.
| Asset | Price | Type | Timeframe | Context | |
|---|---|---|---|---|---|
| Situational Awareness fund public equity book | $ $16 billion | book value | Most of the public equity book was reportedly purchased in one discounted block trade. | 01:57 |
Founder of Citadel who publicly called for hawkish Federal Reserve action and allegedly acquired the discounted equity book.
00:00Manager associated with the Situational Awareness fund, which held concentrated leveraged bets on AI infrastructure.
00:17Ken Griffin's firm, which allegedly acquired most of the $16 billion public equity book.
00:08Media outlet where Ken Griffin appeared while discussing inflation, jobs, and Federal Reserve policy.
00:52Media outlet where Ken Griffin appeared while discussing inflation, jobs, and Federal Reserve policy.
00:52