It's both. Saying that LLMs are AI and that they're so powerful that they might become gods is doomspeak that also inflates their valuations, because our society doesn't value things by their contribution, but by their potential for exploitation and disruption.

The message is basically that it is too dangerous for you to run on your computer. They want to sell you it through a subscription service.

They know LLM have serious diminishing returns now, can't grow much anymore and certainly not get to AGI anytime soon but investors won't like the message, so if the government sees it as too dangerous and pulls the handbrake right about now that'd be so convenient. Certainly if it also keeps out or limits (Chinese) competitors.

Yeah they’re promoting it by saying 😱omg it’s so dangerous you need to regulate us knowing that no one will and it’ll just scare people into thinking it’s going to be all powerful, and that gives those in positions of power massive hard ons for more authoritarian control. Or something like that idk Cory Doctorow saying interesting things about it recently, nice antidote to all the scare hype atm