I mean, yes, that's one possible outcome.

I personally believe that it's more likely that the current batch of massively overleveraged AI companies go broke in the next year or so as the AI bubble bursts. Hopefully the USA manages to get its democratic shit together enough to not bail them out (as happened in 2008), and they just... stop.

The OSS models are almost at the same level, and are progressing fine. The technology continues to be useful, even if all the oligarchs go away.

Imagine that AI lives up to its promise, gets captured by unaccountable bureaucrats and socialist dictators, ushering in a world of untouchable über-oligarchs that de facto rule the world. Would it have been worth it then? Can this problem even be solved?