JPMorgan has reportedly ceased its lending operations with Situational Awareness, the hedge fund founded by Leopold Aschenbrenner, according to sources familiar with the matter cited by the Financial Times.

The bank, which had acted as one of the fund's primary lenders through its prime brokerage services, informed the firm of its decision to terminate the relationship after Situational Awareness incurred losses. Morgan Stanley had engaged with the fund since its inception but never established a formal banking arrangement.

JPMorgan, Situational Awareness, and Morgan Stanley have all declined to comment on the matter, as reported by the Financial Times.