Key Points
Leopold Aschenbrenner, a former OpenAI researcher, launched his Situational Awareness hedge fund in September 2024. Since inception, the fund has achieved over 1,000% returns and now manages over $20 billion in assets. Aschenbrenner focuses on investing in “neocloud” companies, which are specialized cloud service providers designed specifically for AI, capitalizing on anticipated growth in the market.
The neocloud market is projected to expand at a 58% CAGR from 2025 to 2031. Aschenbrenner’s fund has invested in three key players: Nebius (NASDAQ: NBIS), CoreWeave (NASDAQ: CRWV), and IREN (NASDAQ: IREN). Nebius is expected to see a 550% revenue growth in 2026, while CoreWeave and IREN are forecasted to grow by 147% and 46%, respectively. In terms of pricing, Nebius, CoreWeave, and IREN currently trade at six, three, and seven times next year’s sales, respectively.
Nvidia (NASDAQ: NVDA), a major player in data center GPUs, holds significant stakes in Nebius and CoreWeave and has the option to acquire a large stake in IREN. Analysts predict substantial sales growth for all three companies in the coming years.
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