Yep. Such a disgusting industry. They created the arm race, push for the arm race, put themselves in position to benefit from the arm race
sama and his cadre are uniquely evil captains in this race, but they're completely replaceable and the dynamic would remain the same.
The reactions vary from:
1. China will do it anyway (need some supranational governance scheme)
2. This is just an attempt at regulatory capture
3. This is just marketing
4. Regulation is bad mmmmkay
And no, I don't think it will end well.
The other factor is that if it is truly an "alien mind", racing incurs risks to all players. In game-theoretic terms it may be more like a stag hunt than a prisoner's dilemma. In which case cooperation is an equilibrium.