Report says Jane Street cut risk after July AI-stock losses

Jane Street took a reported $15 billion hit in July from exposure to the AI-focused hedge fund Situational Awareness and other technology stocks during a market selloff, according to people familiar with the matter and an employee note seen by Reuters. The note said AI-exposed stocks declined sharply in July and that several large memory and semiconductor stocks were down about 50%. Jane Street said it had closed a significant portion of risk in the areas where it lost money and reduced risk-taking in other strategies. The firm could not immediately be reached for comment, the report said.