> Consider Linux versus Windows. My suspicion is that Microsoft has spent more money on Windows dev than has ever been spent on Linux dev.
I'm not so sure about that, if we only consider the kernel (everything else would be a lame comparison). Linux likely has had many more paid devs than the NT kernel for the last 10-15 years, if not more.
> This is a fallacy
I also don't think this is a fallacy. Yes, of course a large company has a big head and spending is generally much less directed and efficient than in smaller companies (big news). But, lots of money also tends to pay great talents.
> that I see repeated about the quality of open products all the time.
... and I didn't mention quality anywhere.
As for open source: Software has near zero initial cost, iterations are extremely fast compared to anything manufactured and software engineering is an abundant skill. Hardware has high initial costs, high manufacturing costs, iterations take a lot of time and HW design encompasses quite some areas with a much smaller pool of people being able to do it.
Also, a massive company like Intel which sucks up talent all the time from the hiring pool has the resources to evaluate multiple avenues of optimization at the same time, pick what looks best, and iterate (which, pretty much, is what Intel has been doing ever since Sandy Bridge). Another example here would be Intel developing P4, a massive and staggering failure comparable to the PowerPC970 debacle (just bigger) -- and then pulling the Core arch out of the hat (which originates, guess what, from a different engineering team in a whole different branch of Intel -- again, resources!).
What I do expect here is that some companies might think they can influence an arch early on by diverting resources to it, to maybe save some money in the future (by not paying ARM anymore and other synergetic effects I mentioned above), and perhaps in the hope of getting a product that outperforms ARM/the competition in some metric(s).
(Also we have seen in the past in quite some instances that CPU design is a very delicate art and even pouring massive monies into it might actually not get you very far - see AIM/PowerPC [although it was quite successful in some niches] - or, on the other hand, that radically new architectures that might theoretically be better don't succeed, because you don't get the fab access, or tooling access, or software, see eg. Transputer and many related examples)