> How would regulatory capture of LLM realistically look like? Do you have any ideas here?

Let's flip this around. What do you imagine the most likely form that regulatory capture crafted by the major LLM Manufacturers would be?

When rolling this question around in your head, remember that the US Congress gave the telephone companies that blatantly and knowingly violated FISA retroactive immunity for their crimes in the 2008 FISA Amendments Act. Congress will move mountains if the majority of its members are scared enough and/or see enough profit in something.