Earlier quoted context omitted.
Around the time of K8 being released, I remember reading official intel roadmaps announced to normal people, and they essentially planned that for at least few more years if not more they will segment into increasingly consumer-only 32bit and IA-64 on the higher end
Itanium was bonkers in lots of ways—very cool in others. But this market segmentation idea just seems absolutely insane to me in a way I’ve never had anyone satisfactorily explain. It requires Intel to voluntarily destroy the commodity economics that put their CPUs on a rocket ship to domination. It’s as if they actually bought into the RISC FUD from the 1990’s that x86 was unscalable, exactly when it was taking its…
That's exactly what was happening.
Though it helps to realise that this argument was taking place inside Intel around 1997. The Pentium II is only just hitting the market, it wasn't exactly obvious that x86 was right in the middle making its biggest leaps.
RISC was absolutely dominating the server/workstation space, this was slightly before the rise of the cheap x86 server. Intel management was desperate to break into the server/workstation space, and they knew they needed a high end RISC cpu. It was kind of general knowledge in the computer space at the time that RISC was the future.