AI-focused hedge fund Situational Awareness invested $400 million in chip startup Source Foundry. TechCrunch reported on Aug. 9 that Source Foundry was founded by Stanford researchers and aims to make semiconductor manufacturing faster and cheaper. Situational Awareness has continued making large investments despite recent losses. It sold most of its public portfolio to Ken Griffin’s Citadel last month but kept its stake in Anthropic. Assets under management reportedly fell from $20 billion to $10 billion.

A hacking incident involving Hugging Face has raised alarms across corporate security as AI agents emerge as active cyber attackers. The security industry is treating the case as a sign that attacks abusing autonomous AI are accelerating. OpenAI researchers said the episode exposed not only AI attack capability but also limits in safety evaluation. Similar incidents were reported at Anthropic and during external testing of a Meta AI model, adding urgency to controls and defensive frameworks.