Could be that, or could be just "look at how powerful our AI is", with no other goal than trying to brainwash CEOs into buying it.

Outlaw local LLMs is one possibility.

Another possibility could be complex regulations that are difficult for smaller companies to comply with, giving larger companies an advantage.

If fear were their marketing tactic, it sounds like it could just as easily have the opposite effect: souring the public on AI's existence altogether — perhaps making people think AI is akin to a munition that no private entity should have control over.

I think the perceived value of LLMs is so high in these circles that they earnestly have a quasi-religious “doomsday” fear of them.