Fine-insured bounties 'fixes' this. A strong enough financial incentive can lead to bounty hunters bringing extranationals into the state where FIBs are legal to reap the rewards; further, if the fine is pegged to some % of estimated TC, the incentive scales directly with the value of the technology you are attempting to dissuade people from capitalizing upon.
(That might be useful assuming you think Yud's criticism is valid, which I don't really anymore. I think normal redistributive methods are going to be more than enough. Food for thought, though.)
This is my overriding concern. This is a wave crest that if you don't ride it, it may well crush you or take the ocean with it and leave you in a desert. It is as interesting as fire as a tool for civilization going forward.
Did you recall that your planet is currently in a sixth extinction event, brought about, yes, through the repeated overuse of fire?
Zeus was right. Prometheus belonged on that rock.
I wouldn’t expect any regulation or laws to slow it down at this point. You might get the U.S. to crack down on it and stop innovation, GPL or proprietary license holders might win a lawsuit, etc.
But I suspect the net effect would be to push research and innovation out of the jurisdiction that made that decision and into another that isn’t willing to kill LLMs in their economy.
Personally, after seeing what LLMs can do first hand, I’d likely move jurisdictions if the U.S. cracked down on AI progress. There is a not-0 chance that putting bread on my table in 10 years requires it.