When rust will lose popularity, it is going to happen eventually, I would bet it’s in favour of a newer and more promising programming language. Not C.
They're excellent at doing things I'm not an expert at, though! https://en.wikipedia.org/wiki/Gell-Mann_amnesia_effect
This was about 500 lines of working rust in about 10 minutes, approximately 25x my pace at writing rust. (I’m a bit of a beginner.)
They're good at web languages, python, and C/C++. As far as I can tell Rust works if you're already good at Rust and you can catch its screwups and strange architecture choices quickly.
Rust is native binary + fearless concurrency + memory safe and AI can help you to achieve these targets very fast. That's why Rust is the winner of all the languages, every software needs to be fast, secure and able to run forever.
If 'building a programming language' means writing an interpreter or VM, then I can see the attraction of Rust for that case. But writing interpreters and VMs is like 0.0001% of the programming that gets done in the world.
There is no reason I would care about borrow checking implementing a compiler, and besides all the tooling, Java also has stuff like ANTRLR and MPS, and naturally Graal is a good playground for compiler backend tooling.
However in general, I would rather look into OCaml, Haskell, F#, Scala.
In 2025 there are hardly single language compiler toolchains being released.
Also if the chip toolchain is based on a GCC or clang fork, there are several frontends to chose from.