Two birds with one stone.

They would be convincing the government these tools are extremely powerful, the government reads that as a potential weapon. They're also convincing the government its so dangerous the industry needs heavy regulation.

Investors read that as (a) the government would be a huge customer and (b) the government would be regulation in a way that prevents further competition and may deem the companies too big to fail, both making these safer investments rather than riskier ones.