I guess that's one way to guarantee development slows down to a crawl, but in no way would it increase trust.

why would that be the case? it's not true for top secret defense contractors today. and the frontier labs already operate in the dark, openness is a liability.

nationalization to me simply means the government is their main customer and stakeholder, and shield them from liability, governance, and openness. not that the frontier labs become part of the government per se.