So basically US taxpayers were involuntary seed investors who funded the highest initial risk to achieve validation and proceeded to be wiped out at Round A by Google.
Other large countries' governments are definitely funding their own research groups in this space and while previously in the 80s and 90s trade sanctions were a potent threat, it's become very clear from the experiences of India and China in the 2000s that there's nothing much US can do (short of a MAD nuclear war) to hold any moderately powerful country back.
So it's best to not fritter away the lead and throw what resources it can when there's still time to keep the lead.
The US has not tried to hold China back in any way since 2000. More like it did everything possible to help them grow.
My guess is we'll see a competitive server and/or mobile chip out of China Fabs within 3 years, notwithstanding US pressure on ASML and Netherlands to not export EUV equipment.
Even agains huawei they US stopped well short of any serious actions.
Also afaik John Martinis maintained a paid and tenured position at UCSB during his work at Google.
Its the idea that the University would 'own' part of a commercial enterprise that's chilling. Means even more commercialization of Universities than at present.
Obviously noone should be forced to stay where they don't want to be or prevented to work where they want but in this case it's about what they take and bring with them beyond their innate skills.