U.S. Senator Elizabeth Warren has issued a stark warning that the AI industry is facing financial risks akin to those that precipitated the 2008 financial crisis. Speaking at an event in Washington, Warren highlighted concerns over high-leverage financing, revenue growth lagging behind expenditures, and reliance on opaque private credit, which she argues are increasing the fragility of the financial system. Warren proposed the creation of a dedicated digital regulatory agency to oversee antitrust, privacy, and consumer protection in the AI sector. She emphasized that AI companies should not receive bailouts if they encounter financial distress, to maintain market accountability. Her warning underscores the systemic risks and regulatory gaps in the rapidly capitalizing AI industry.