AMD aren't really spending anymore than the other players are in integrated consumer AI applications since they're counting on their partners like Microsoft to do most of the heavy lifting for them and even if they do fail to make something out of it, they still have a fallback plan to provide a programmable interface for their XDNA NPUs if software developers want to create arbitrary software programs for them. Who really cares what they do with their instinct products since they're siloed off from their other product segments ?It's little low hanging fruit things like this that gives NVidia the market share it has, AMD's HW encoding quality is really bad with either AVC/AV1, encoding anything at twitch standard 6Mbit settings for ex. with either HQ/CBR/VBR in any barely moving image just encodes a bad mix of blurry and blocky image with no detail preservation whatsoever. I'm not even a streamer but sometimes one would like to record stuff for a guide or showing funny stuff, etc. and even simple things like this makes me uneasy about going with AMD next round since very little to nothing has been done to improve their encoding quality, instead they decide to waste a few millions chasing the overblown "AI" bubble.
If you're looking for higher quality/data rate live video encoding, integrated video engines aren't the answer when they're balanced around performance/low hardware footprint. A modern high-end CPU or an ASIC are more suitable for that purpose ...