I am a little confused on all this. I thought conventional wisdom was that creating "super good/ top performant " computer processors was hard, and unless you could produce them at scale prohibitable expensive.

Is this done as a bridge until/if Nvidia is able to deliver their processors fast enough?

I would think that competitors to Nvidea would have serious competitors on the market already if competing can be done by Microsoft for whom producing hardware is not their main business focus.