It's fear mongering but it's also an attempt to pull the ladder up before cheaper LLMs come along and eat their lunch.

The argument will be something like, "this shit is soooo dangerous only our companies can be trusted with it, let's put some onerous requirements around development, maybe force companies developing LLMs to register with the government".

Gotta juice that stock before the bubble bursts.

They're afraid of losing their money. AI can do everything but make more of it.