* Regulatory capture - AI Labs [partially] capture government functions, i.e., take over. In practice this equates to oligarchy.
* Nationalization - Government takes over AI labs through some form of direct or indirect control (e.g., dirigisme).
The article discussion does not seem to consider either of them. And the idea that AI labs would act in the interest of citizens at large seems laughable. In practice it looks like California Forever [0], which is quite the opposite.
[0] https://en.wikipedia.org/wiki/California_Forever
edit: clarity