> They are asking for FAA style preclearance and third party audits. That literally means no new AI startup can emerge. Do they not know that audits cost money?

Training frontier AI models costs money, orders of magnitude more than third-party audits. If you can afford to build the model, you can afford to have it audited.

Cost as 'money' is not just about a one time audit fee. What I mean by money is that pre approval also affects time and human resources. In reality, it is difficult for startups to hire people to handle this. For example, DeepSeek in China has 300 employees. If they were subject to regulation, they would typically need to hire about 5 to 10 additional people for a compliance team. That is hard for a small company. I partially agree, but even if the monetary amount is small, the very fact that fixed costs arise in organizational operations is the real problem