AMD's CEO is the cousin of Nvidias CEO.
Neither will encroach too much on the others turf. The two companies don't want to directly compete on the things that really drive the share price.
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However the amount of resources at stake is incredible. The delta between NVIDIA's value and AMD's is bigger than the annual GDP of Spain. Even if they needed to hire a few thousand engineers at a few million in comp each, it'd still be a good investment.
Neither will encroach too much on the others turf. The two companies don't want to directly compete on the things that really drive the share price.
Every 'run cuda on AMD' project gets bought then cancelled. Every cuda alternative is understaffed and cancelled as soon as it starts to gain any traction, etc.
To me it looks like a clear attempt to not hurt each others businesses whilst being deny-able if anyone accuses them of unfair market practices/collusion.