The hobby market should be considered as a pipeline to future customers. It doesn't mean AMD should drop everything and cater specifically to them, but they'd be foolish to ignore them altogether.

The hobby market is how you get 'market default' N years later

This probably does work for the first mover. It's not clear that it can work for the underdog.

Nvidia's success.

You think the company that supplies every hyperscalers is market leader because of the hobbyist segment? Lol

So, what is the reason only Nvidia supplies the hyperscalers?

they have lots of money and they use that money to pay software engineers (their employees...) to write quality software.

Water is wet. Please check the history of their software stack and why it always was superior to alternatives when they didn't have a lot more money than ATI/AMD. The reason they power hyperscalers is because they catered to enthusiasts and academy researchers attempting to use their GPUs for general purpose computations in early 2000s, since GeForce 3. Then they used that experience to build CUDA which simply worked, and quickly gained mindshare. People have used their software for all imaginable purposes, which was a major factor behind their improvements and eventually becoming market leaders as killer applications for GPGPU have been found (simulation and then AI). This experience is not replicable even with dogfooding, which AMD also doesn't seem to do.

so, all these years AMD just failed to hire good engineers and refused to pay well?