For computers, the market is basically divided between Microsoft and Apple. Yes, there are some other players, and Linux is certainly a factor, but to a large extent, you get to choose between the two Big Boys.
I think the AI boys want to play the same game. OpenAI and Anthropic. They need to squeeze out any and all other competition. Expensive government regulation would be very helpful to these larger firms. They can pay the price, but smaller companies and start-ups will be shut out if the the cost of security, regulation, certification, and licensing can keep going up. The bar will be too high for them.
I think the Fear is a ploy for creating what will end up being a government regulated monopoly.
Lobbying for regulatory capture to keep out any future startups.