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> they're losing a massive number of their customers

Who are they losing them to? They're the only game in town.

> it's now a massive supply chain risk for any customer to use a regulated provider

But seeing as there is no alternative use them they will.

> the regulated losing a massive part of their customer base

But they aren't. Access to existing models isn't being pulled. It is only access to previously unreleased models that is being restricted going forward.

> Open models are mere months behind.

Presumably the government will strategically ease restrictions as open models gain ground.