@jillesvangurp. I am arguing in my post above, that there is a solution.
Solution is in 'fragmentation of power'. Yes it has its costs, but it is just a much better model.
Be it economic fragmentation of power (via de-monopolization), or political (via explicitly enumerating federal powers, and then splitting the rest for states to manage), or moral authority power (by ensuring multi-cultural, multi-view, no-moral-police environment).
Google cannot remain the monopoly it is. And US gov has to accelerate its breakout.
This was basically the same argument the Zentrumspartei made for voting for the Enabling Act in 1933.
I don't believe Google declining to weaponize AI, which lets face it is what all this posturing is about, would be helpful at all. It would just lead to somebody else doing the same, or worse. There's some advantage to being involved: you can set terms, drive opinions, influence legislation, and dictate roadmaps. The flip side is of course that with great power comes great responsibility.
I grew up in a world where 1984 was science fiction and then became science fact. I worry about ubiquitous surveillance, un-escapable AI driven life time camera surveillance, and worse. George Orwell was a naive fool compared to what current technology enables right now. That doesn't mean we should shy away from doing the research. Instead make sure that those cameras are also pointed at those most likely to abuse their privileges. That's the only way to keep the system in check. The next best thing to preventing this from happening is rapidly commodotizing the technology so that we can all keep tabs on each other. So, Google: do the research and continue to open source your results.