Not asleep; they just directed their efforts at things that haven't worked out. With their APU lines it looked like they wanted to integrate GPUs completely into the CPU - that was hardly asleep to the importance of GPU compute.

The problem they ran in to looks to me to be that they focused on targeting a cost-effective low end market and were caught off-guard by how machine learning workloads work in practice - huge burst of compute to train, then much lower requirements to do inference. That isn't something they were strategically prepared for and that isn't something that software industry has seen before either.

Won't save them from market forces, but their choices to date have been reasonable.