JPMorgan reportedly ends lending to AI-focused hedge fund

JPMorgan ($JPM) stopped lending to Situational Awareness after heavy losses at the AI-focused hedge fund, Reuters reported, citing the Financial Times. The fund subsequently sold most of its equity portfolio to Citadel, according to the report.

The report follows an investor update showing a 67% portfolio decline in July. Other banks reportedly continued serving as brokers. The story concerns JPMorgan’s decision to withdraw lending support; it does not disclose a corresponding credit loss at the bank or establish that JPMorgan suffered the fund’s reported investment losses.

Sources:

• Reuters, citing the Financial Times — hedge-fund lending