This was the obvious play for a long time, now that Intel can see reason again here we are.
You can look at the obvious goal vs competing ISAs but this goes well beyond that, it is finally acceptance from Intel that AMD are not their enemy, not the main one anyway.
On the fabs side of course TSMC is, but fabs and design will be separate companies one day so not that either.
AMD had Intel beaten with Rome and its successors, they knew then who the main rival would be which really accelerated the EHP roadmap beyond just the DoE contracts.
And now Intel know too, but have no real say in the accelerator market for a good while which means burying the x86 hatchet is the right play for both companies.
This announcement is de facto AMD and Intel working together to beat NV, simple as that. Their goals are now aligned fully against the green eye of envy.
Because Intel might as well fold the design arm if they cannot eat at NV’s market share, they are a useless company if they try to compete vs AMD alone.