Everything about this situation is absolutely bonkers. Marking a US company as a supply chain risk hasn't been done before AFAIK, and is a guaranteed end of the company.

It's the US government basically unilaterally deciding to end a leading AI researcher company. Years of lawsuits will follow, comparisons to "communism", accusations of Trump/Heghseth being Chinese/Russia agents (because well, how else do you hand over the AI win to China than by killing one of your top 2?)