India, July 30 -- Leopold Aschenbrenner's hedge fund Situational Awareness has completely unwound its investment portfolio after suffering heavy losses on its AI and software trades, according to CNBC's David Faber. The fund sold its entire portfolio to another hedge fund as it worked to exit its positions. The hedge fund managed around $20 billion to $24 billion in assets before the unwind.

The fund came under pressure after losses from AI-related investments and short bets against software companies hurt its portfolio. Earlier, Bank of America, Goldman Sachs and JPMorgan Chase helped the fund manage its positions and meet margin requirements, according to earlier CNBC reporting citing people familiar with the discussions.

The banks al...