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.
The open source community will catch up in at most a year or two, they are scared and now want to use regulations to strangle competitions.
While their AI is going to advance as well, the leap will not be qualitative as the ChatGPT gen 1 was - so they will lose competitive advantage.