I think it's the right call since there isn't much competition in GPU industry anyway. Sure, Intel is far behind. But they need to start somewhere in order to break ground.
Strictly speaking strategically, my intuition is that they will learn from this, course correct and then would start making progress.
> "They need to start somewhere in order to break ground"
Intel has big problems and it's not clear they should occupy themselves with this. They should stabilize, and the most plausible way to do that is to cut the weak parts, and get back to what they were good at - performant secure x86_64 CPUs, maybe some new innovative CPUs with low consumption, maybe memory/solid state drives.
That's a very low margin and cyclical market since memory/SSDs are basically commodities. I don't think Intel would have any chance surviving in such a market they just have way to much bloat/R&D spending. Which is not a bad thing as long as you can produce better than products than the competition.
"there is not much money in it"?
WTF?
Intel tried to get into GPU-like products 14 years ago. They promote their consumer Arc GPUs since 2022, and still almost nobody wants them. Is there a datacenter Intel GPU that some business wants?
The big money is flowing NVIDIA's way, and even if Intel can make a GPU, it won't be able to divert a big part of the flow, similarly to AMD.