What regulation are they proposing that is actually a serious barrier to making a company around AI?
If OpenAI just wants to prevent another OpenAI eating its lunch, the barrier there is raw compute. Companies that can afford that can afford to jump regulatory hurdles.
Because this is the reason that VCs exist in the first place. They can roll a company with a ton of capital, just like they did with ride share companies. When that happens, and there aren't sufficient barriers to entry, it's a race to the bottom.