I don't see a reason to believe they're not capable of doing this. Plus, it's not only Canonical working on this, they are _funding_ the development in partnership with University of Bristol. They'll obviously leverage AI to do part of this migration (as explained in TFA).

It'll be interesting to see how successful this research project can be. Plus, moving to Rust is a long-term strategy adopted by various other Linux/OSS based projects so they're not unique in this regard.