There is also a downside I assume.

Frankly, I give ZERO trust to the promises from OpenAI and Anthropic of not using my data for training. They never cared about copyright, using our session data for fine tunning it too juicy for them not to to dip their fingers on.

And thus, by restricting access to the latest models, the US government is giving a gift for the chinese labs, that will now receive lots of new users providing them with data related to real world software development.

I think by limiting the usage other countries will start looking for alternatives, since you wont have access to the best models or you can be without any model in case the gov decides.