Legendary investor Paul Tudor Jones has issued stark warnings about the risks posed by artificial intelligence and the current state of the U.S. stock market. In a recent interview, Jones highlighted the dangers of AI, criticizing the industry's 'build-break-iterate' approach and calling for urgent regulation to prevent catastrophic outcomes. He proposed watermarking AI-generated content as a critical step to restore social trust. Jones also expressed concerns about the U.S. stock market, describing it as being in a 'sovereign debt bubble.' He noted that the stock market capitalization-to-GDP ratio has reached 252%, far exceeding historical peaks. Jones warned that if valuations revert to historical averages, it could lead to significant economic repercussions, including a potential 35% market decline.