We all knew AI had the potential to be extremely powerful, and we all perused it anyways. What did we think would happen? The government/military always takes control of the most powerful/dangerous systems. If you work for a defense contractor or under ITAR then you already know this.

The right way to deal with this is political - corporate campaign contributions and lobbying. You're not going to be able to fight the military if they think they need something for national security.