Isn’t this just a public company with extra steps?

I have a feeling that this will backfire. There will obviously still be a lot of unlabeled AI content made in/by foreign nations and local models, and since AI content is supposed to be labeled, people will be less cautious and more easily fooled by it.

I don’t see that as a problem. A vacuum cleaner isn’t critical infrastructure and shouldn’t be connected to the internet, so no security concerns. Worst case scenario it ruins your carpet. Majority of the work here will be done on hardware side it seems.