Great point. Intel tried to break into the mobile and graphics market for sooo long with no success.
I do hope the AI specific TPUs that come out on the future will follow the ARM model instead of being silod into proprietary architectures. Fucking hate the vendor lock in of NVIDIA with CUDA.
It's not about them being ignorant about it. It's about them making decisions in spite of that knowledge - decisions that Make Sense™ for the advancement and increased profitability of the incumbent cash cow, but they are often contradictory or have a negative impact on new tech investment.
Here's one main reason why Nvidia will not go "full TPU" with its chips - it wants "scalability". That means it wants an architecture that can be "flexible and server different markets".
The companies that specialize in AI chips will likely beat them in performance because they only care about winning one market at a time (and the AI market is a pretty big one).
Intel's AI strategy is even more of a mess, because it has no clue what it can use to beat Nvdia, so its investments and developer ecosystems are all over the place.