Feel free to make an AI model that does almost anything, though I'd probably suggest that it doesn't make porn of minors as that is criminal in most jurisdiction, short of that it's probably not a criminal offense.
Most companies are only very slightly worried about criminal offenses, they are far more concerned about civil trials. There is a far lower requirement for evidence. AI creator in email "Hmm, this could be dangerous". That's all you need to lose a civil trial.
Nah, I think it's a disagreement over whether a tool's maker gets blamed for evil use or the tool's user.
It's a similar argument over whether or not gun manufacturers should have any liability for their products being used for murder.
This is really only a debate in the US and only because it's directly written in the constitution. Pretty much no other product works that way.