Earlier quoted context omitted.
For some reason AMD's GPU division continues to be run, well, horribly. The CPU division is crushing it, but the GPU division is comically bad. During the great GPU shortage AMD had multiple opportunities to capture chunks of the market and secure market share, increasing the priority for developers to acknowledge and target AMD's GPUs. What did they do instead? Not a goddamn thing, they followed Nvidia's pricing and…
Does this have anything to do with AMD's GPU division being a result of an acquisition (ATI)?
AMD fundamentally viewed/views GPUs as nothing more than a tool to make semicustom deals. Just like "xbox isn't the product, gamepass is the product" - well, for AMD "radeon isn't the product, semicustom is the product". The only thing they really need graphics for is APUs, and they don't need to beat the 4090, they just need to beat Xe-LP. They don't need raytracing, they don't need that "AI" crap (oops), just to run games at 720p/1080p.
They're happy to squeeze whatever they can out of Sony/MS's R&D spend, but they aren't going to invest heavily on their own. And now that there is an obvious money fountain occurring in AI/ML... that is starting to change.
It was always about the money, specifically the lack of it. AMD knew HSA-Library/OpenCL/etc sucked, they didn't care, especially when the money was better spent going after Intel instead of NVIDIA. Intel is dysfunctional and AMD had a chance to crack their marketshare, and that's where every penny they had went. And that's probably not a wrong business decision.