You're asserting correctness with no facts to offer of your own, just speculation and your own biased assumptions.
What if consolidating AI into a highly regulated cartel, with no chance of upstart competition ruining their position, is the scenario that leads to the worst possible outcome?
Is it really hard for you to imagine that enshrining a cartel and wedding the government to it, centralizing AI even more than it already is, is actually the path that leads to the doomsday scenario you imagine?
What if consolidating AI into a highly regulated cartel, with no chance of upstart competition ruining their position, is the scenario that leads to the worst possible outcome?