It’s not a binary choice. There are more options than let the labs run wild and capture the full stack and then the whole knowledge economy or make them entirely illegal and move all activity to the black market. We can regulate to limit their ability to operate to just providing utility inference: make them divest codex, Claude code and any apps; they can only be an API that others build on. Limit their ability to buy compute to a specific amount of available supply so other companies are able to buy compute. Limit their ability to accumulate private training data and require that they make their training data publicly available for others to use after a certain period of time. Make them legally obligated to publish their weights so others can. All of this would increase competition and ensure that they don’t establish dominance over society.

Then we could require comprehensive logging of every tool call, model trace, chain of reasoning, and even tensor propagation all of which would be spot inspected like the CFTC does with commodity trading and settlement. We could have embedded auditors with specific risk analysis metrics like large banks do. We could limit tool calls to dedicated sandbox’s with a blanket prohibition on AI accessing user space. We could create a parallel internet for agents so they are only able to access Secure Enclave. Even if these measures aren’t 100% perfect they would reduce the risk.