They absolutely could have done so multiple times, and did a few times with the iGPU and Larrabee, but the issue was that they wanted to protect their lucrative CPU cash cow.
So Jensen and nVidia worked around them. Any big tech company can become a fabless semiconductor company quickly, so the value edge of having "the best CPU" is declining. Intel products are OK for now but we can machine translate x86 to ARM or risc-v so well that it won't matter.
So Jensen and nVidia worked around them. Any big tech company can become a fabless semiconductor company quickly, so the value edge of having "the best CPU" is declining. Intel products are OK for now but we can machine translate x86 to ARM or risc-v so well that it won't matter.