Many various reasons for this but one perspective I am curious about is how much this is actually a defensive move against Intel, because nVidia knows Intel is busy developing dedicated graphics via Xe, and if nVidia just allows that to continue they are going to find themselves simultaneously competing with and dependent on a vendor that owns the whole stack that their platform depends on. It is not a place I would want to be, even accounting for how incompetent Intel seems to have been for the last 10 years.
Intel has been promising high-end graphics for decades, and delivering low end integrated graphics as a feature for their CPUs. Which makes sense, the market for CPUs is worth more than the market for game oriented GPUs. The rise of GPUs used in AI might change this calculation, but I doubt it. I suspect that nVidia just would like to move into the CPU market.
Edit: yes I meant nVidia not AMD!