Give it a year and a 10x more efficient algorithm, and we'll have GPT4 on our personal devices and there's nothing that any government regulator will be able to do to stop that.
That happened a few months ago with LLaMA. Since then, the open source community has exceeded all expectations democratizing the hardware angle. AI regulators are already checkmated and they don't know it yet. If their goal is to control the use of AI (rather than simply controlling the people building it) then they'd need to go all the way when it comes to tyranny in order to accomplish their goals. Intel would need to execute Order 66 with their Management Engine and operating systems would need to modify their virus scanners to monitor and report the use of linear algebra. It'd be outrageous.