That would make the regulations fairly pointless unless you think only mega-corps will ever be able to afford the compute for these things.

Compute continues to get cheaper and cheaper. We have not hit the physics wall yet on that.

That and if someone cracks efficient distributed training in a swarm type configuration then you could train models Seti@Home style. Lots of people would be happy to leave a gaming PC on to help create open source LLMs. The data requirements might be big but I just got gigabit fiber installed in my house so that barrier is vanishing too.