It doesn't make much sense to say that Intel can't build something better than a GPU, right? It's like saying the reason nvidia doesn't build CPUs is because they can't build a better CPU than Intel. It distracts the conversation.
So the question really is, what is the long term strategy and why? It appears to me that Intel has validated some of this "custom hardware" FPGA strategy and that their view is it will be "better together."
I agree that Intel is erecting roadblocks, but I doubt it is because they "can't build a GPU," rather more likely because "they can erect roadblocks." In fact, they are obligated, by their shareholders, to erect those roadblocks (or to play dirty if you want).
You seriously need to investigate what a cluster#$%! Xeon Phi is. Their attempt to kill NVIDIA was a joke and continues to be one for anyone not getting paid to say otherwise.
IMO if Intel really cared about "shareholder value(tm)" they would have acquired NVIDIA by hook or by crook. Instead, they bought the promising redheaded stepchild Altera.
Meanwhile, NVIDIA owns the ML/Deep Learning space for at least the next 2-3 years no matter what manure Intel tries to fling at them. If only AMD had a decent driver/tools team, this battle could be far more interesting.
That said, 2018 or so and beyond is a green field(tm) if Intel stops choking on its own process and exploits its process advantage to build a GPU killer either as a co-processor or by integrating sufficient multiple AVX units into the cores of its CPU roadmap.
On the contrary, Xeon Phi has absolutely been a move to get some of the hot GPGPU market, and it's not working very well. AFAIK they don't have any cases where they beat GPUs on performance per watt (or per hardware dollar). So it's highly accurate to say they can't build something better than a GPU (so far).
So the question really is, what is the long term strategy and why? It appears to me that Intel has validated some of this "custom hardware" FPGA strategy and that their view is it will be "better together."
I agree that Intel is erecting roadblocks, but I doubt it is because they "can't build a GPU," rather more likely because "they can erect roadblocks." In fact, they are obligated, by their shareholders, to erect those roadblocks (or to play dirty if you want).