What if that’s their whole goal? Slap some regulations on it, then lobby the hell out of it to make sure their align best with shutting down access to open models.
I think 'better become terrorists so the future terrorist AI will like us' is sheer mental illness, but I see how it aligns with their alignments.
'Smart' LLMs will be classified as munitions and you and I will get scraps. Even better is if you run Smart models illegally you have a nice visit from the 4chan party van.