XeSS wasn’t really that competitive right out the gate to DLSS, it fell short and needed another version to look good.
People sleep on them all the time and have paid zero attention to what they are actually doing in the background only to lambast them on “oh it’s missing this or it’s missing that” when those features already exist in another sector they operate in or they already dabbled in it before but the market responded negatively to it.
Hardware accelerators like Tensor Cores are something people keep bringing up as a necessity for them to compete, and how they have nothing of equal in their stack.
If people looked one second away from the desktop Gaming space and looked towards HPC and DC products, they’d find what they are looking for right there. People base their entire opinion of disdain towards AMD based on Desktop and a few years of really bad products compared to its biggest competitor, but ignore the good ones or the big strides that they offer
Intel’s GPU offerings have so many issues still and they will need generations to iron them out.
A lot of their desktop decisions come from what their biggest costumers pay them to research and develop to implement into their hardware, ie the consoles. That isn’t to say AMD has no will of their own, they do, but Sony and MS greatly influence with lots of 0s on a check.
HPC is different and a very much their own thing type of beast. Intel has and still has subpar offerings for a GPU at that scale, and AMD is able to deliver a single package of both a GPU and CPU that has been helping them
a lot in gaining share the last few years.
Nvidia is still the most relevant in the GPU HPC/DC side, but AMD is still the most competitive with that regard, and that package of a good GPU+Good CPU is irresistible.