JPMorgan Chase (JPM.N) cut off lending activity for Leopold Aschenbrenner's hedge fund Situational Awareness after large losses tied to his AI bets led to a near-collapse, ‌a source familiar with the matter told Reuters on Friday.

The AI-focused hedge fund liquidated most of its public equity holdings to Citadel after a global chip-stock rout exposed its leveraged bets to steep losses.