The high-flying AI hedge fund Situational Awareness, founded by a 24-year-old former OpenAI researcher, has been rescued by Citadel, the firm of billionaire Kenneth Griffin, according to people briefed on the transaction. The fund was forced to unwind its public stock portfolio after leveraged bets plummeted in value. Despite the setback, Situational Awareness still holds shares in Anthropic, the AI startup. The bailout by Citadel underscores the fund's connections and the high-stakes world of quantitative investing. No further terms of the deal were disclosed. The fund, which had gained attention for its aggressive use of leverage on public equities, faced a margin squeeze as markets turned against its positions. The rescue ensures the fund can continue to operate, though its public investment strategy appears to have been severely curtailed. The founder, who previously worked at OpenAI, has been tight-lipped about the firm's next moves.