1. The American frontier labs made a gamble that training more capable models would be their best return on investment and invested trillions into an area of research that has yet to prove profitable and capable of returning on this investment.
2. The frontier labs have created models that have reached a point of danger where their functionality has exceeded a point where it is responsible to release the product to the public.
The answer here is NOT to start regulating the space to the point where these frontier labs can entrench themselves into the economy and create a regulatory moat. We instead need to be holding these companies liable for their misuse. They took a gamble that hasn't paid out what they were hoping.
When car manufacturers competed over the size and power of their engines, they eventually found that the incredibly large and dangerous engines had a very limited customer base as many evaluated the increased speed to be of marginal benefit when paired with the cost and danger. We've reached a similar point in AI development. But this time the manufacturers seem to want to regulate the field to a point that will ensure the only thing anyone can sell are bigger and bigger engines.