Because this proves you can't build a reliable business on top of American frontier providers. They really shot themselves in the foot here. There is a lot of eroded trust. Legit business has very little incentive going forward building a great product on top of OpenAI, Anthropic or Google API's when there is legitimate fear those providers will downgrade their services or the US Gov will step in and mandate bans on it.

The #1 rule of a service is reliability. If you don't have that then you dont have anything. Who is going to gamble thousands, hundreds of thousands or millions of dollars building the next big thing on top of a frontier provider when their lifeline can be yanked?

This is the type of decision that pops the AI bubble. They have very little time to figure this shit out before companies pivot away from the failed experiment.