The 'crazy' decision is them slowly abandoning the PC gaming market which is where consumers get these cards, and focusing on the 'client' market to sell their 'Insight' datacenter/AI cards. I think the parent you are responding to isn't questioning why it is a bad 'make money now' profit decision but why it is a bad 'get people to use your system' decision.
"AMD’s client segment, mostly chips for PCs and laptops, rose 62% year over year to $1.46 billion in sales, thanks to recent chip launches.
Sales in AMD’s gaming segment, which includes “semi-custom” processors for Microsoft Xbox and Sony PlayStation consoles, fell 17%. "
1) billions of dollar at the stake
2) one of the most successful leadership
3) during hottest peroid of their business where they heard about Nvidia's moat probably thousands of times during last 18 months...
and you call some decision "crazy", then you probably do not have the same informations that they do
or they underperformed, who knows, but I bet on #1 reason.