this should and must not happen

at least in a democracy, even if flawed, power comes from the people, that is the fundamental raison d'être for people allowing a government to exist

this isn't the case of "AI Labs"

what he is proposing is nothing less then establishing at least partial oligarchy, or in other words while indirectly he is relatively openly saying he wants to overthrow not just the US constitution but more or all every democracies constitution (at least in spirit)

EDIT: Assuming AI Labs == existing private AI Labs like OpenAI. Something analog to the FCC for AI or similar is a completely different topic. But this wouldn't be called AI Labs as it wouldn't be a AI Lab. But a faster moving, less bureaucratic, commission (or similar group) which works in tight communication with AI Labs. So I'm pretty sure he means giving OpenAI and co. power officially comparable to the government in some sectors. Which means practical including corruption etc. it might be above that of the government.