Merit was never competitive. Mass consumption habits select hard for cost, and this is an industry driven entirely by scaling factors. If you can scale for cheaper, you win. Ivy League-decorated researchers aren't doing RnD for free. The frontier labs can only go so cheap before they're so far in the red that VC gets cold feet. Leaving the expensive frontier research up to private enterprise wasn't a long-term strategy.
> I don’t get it. Am I missing something? The only thing a ban would do is protect the American market from further downward price pressure on inference
What's not to get? Do you understand how much money is tied up in the industry? Do you know what happens if that goes up in flames? In the middle of a massive asymmetric economic depression? Why on earth do you think they would just sit there and watch it happen? Because of political virtue signaling about free markets? You know, I have a bridge to sell you if you're interested.