It's not quite clear to me what is being asked here. An "open source replacement for Java and the JVM" doesn't make much sense, since the term "open source" usually refers to software, but Java and the JVM aren't software, they are specifications.
If you are asking about open source implementations of the Java and JVM specifications, then there are already plenty of those. There's no need to build one. There are sone ugly license restrictions that may make it illegal to call those implementations "Java" or "JVM", though.
If you are asking about open standards that provide an alternative to Java and the JVM, then one such set of standards is ISO/IEC 23270 aka ECMA-334 aka C# and ISO/IEC 23270, 23271, TR 23272, TR 25438 aka ECMA-335 aka CLI. Together also commonly referred to as .NET.
They have similar scope and goals as Java and the JVM, with the main difference being that they are published as open standards by two renowned independent international standards bodies, whereas the Java and JVM specifications are proprietary standards published by a bespoke standards body owned by a single company.
Like Java and the JVM, there are open source implementations (well, one open source implementation).