No they mean open source projects.
The overwhelming majority of all generative AI related open source projects depend on, use, or are related to publicly available weights that were trained without permission on other people's data.
The entire open source AI community wouldn't exist if those weights weren't available for everyone to use for basically any reason.
One could argue that the existing weights aren't going to disappear as thats impossible to enforce.
But what about the updated weights? If nobody is allowed to spend 50 million dollars training a new model and then releasing that model publicly for anyone to use, without getting permission from the entire internet to make that model, well then there aren't going to be anymore new models coming out.
The government isn't going to be able to confiscate everyone's gamer PCs in order to ban inference, but they can stop someone from spending that 50 mil training the next cutting edge open source model.
Which means that the existing models will be all that the open source community has. Yeah they could fine tune them, but cutting edge base models are still extremely important for open source AI progress.