[Jane Street Suffers $15 Billion Monthly Loss as AI Fund Plunge Hits Top Trading Giant] BlockBeats News, August 15: According to a report by the *Financial Times*, Wall Street quantitative trading giant Jane Street has suffered significant losses due to its investment in the AI hedge fund Situational Awareness, with a monthly loss of approximately $15 billion in July. Sources revealed that Jane Street disclosed this loss figure while informing creditors about its financial situation, which is related to a $14.6 billion private debt financing transaction. The transaction, led by JPMorgan, involves transferring approximately $11 billion in public debt to private investors, including Pacific Investment Management Company (Pimco). The loss stemmed from a sharp correction in U.S. AI stocks in July. Situational Awareness, an AI-focused hedge fund founded by former OpenAI employee Leopold Aschenbrenner, had previously received investment from Jane Street. The fund, which had concentrated and highly leveraged bets on AI stocks, suffered heavy losses during the market reversal and was forced to sell part of its public equity positions to Citadel. Despite the massive monthly loss, Jane Street has maintained strong profitability in recent years. Data shows that the company achieved a record net trading revenue of $16.1 billion in Q1 2026, with total net trading revenue of approximately $40 billion for the full year of 2025. Market observers noted that such a loss is rare for a proprietary trading firm that has long been low-profile yet holds a significant position in global markets. Following the loss, Jane Street has shifted to private debt market financing, which will also reduce the scope of its financial disclosures to public markets. [Original Link]