Because there is ARM coming.
Yeah you might think it will never take off on Windows or in Servers whatever, but it's just a matter of performance per year. AMD cannot afford to, for example, only increase performance by 10% every 2 years when ARM increases performance by 20% in 2 years at minimum. This is one of the reasons why AMD will not sit still, x86 had a huge advantage against ARM 10 years ago, it's not the case anymore, sitting still is not an option.
Here's my take on that, which is a great point BTW.
Unless there is a massive paradigm shift, Windows will continue to be the ubiquitous operating system for businesses, gamers, and most others for the forseeable future. Windows is x86. Until ARM can outperform Windows in Windows I don't see much of a threat for Intel or AMD in that department.
The only reason ARM exists at all is because it was well-suited for the phone craze, which started in 2007. ARM has tried to "push up" ARM while Wintel has tried to "push down" x86. While there is some crossover in the tablet zone, for the most part ARM owns phones (outside of Apple of course) and x86 owns the desktop and server space.
By paradigm shift I mean something one hardware can do that the other simply cannot. For example, smart phones could simply not run on x86 when they were developed. It had to be something else. Boom, market opening, paradigm shift.
Now, with all that being said I do see what you are saying and AMD/Intel cannot stand still. One scenario could be ARM gets so good that it is competitive with x86 in Windows even in emulation mode. If that should occur and Windows ported over to ARM, and many software manufacturers followed suit that would be the end of x86. So yes that is a possibility, x86 does need to keep some distance but it has the advantage of running natively against ARM doing emulation.
Also, games are a huge part of the x86 stronghold. There is a massive amount of inertia to overcome in that space.
The real question is why Microsoft doesn't port Windows over to ARM now. Bring along their applications and right off the bat those systems would be good to go for many business users. That would be a SERIOUS threat to AMD and Intel. As long as MS staying in their (x86) lane AMD/Intel will remain relatively insulated. Snapdragon gave it a go with Windows/ARM laptops and while they "work" there are too many compatibility problems so most people are passing. I gave it a hard look and moved on.
Looking at my use case I'm actually seeing a need for more MT performance with my 9950X than ST performance. It's kind of unbelievable. The following applications slam all cores on my 9950X. Ultimate Vocal Remover, Handbrake, Vegas Pro, Topaz Photo and Video AI, and some others I think that don't come to mind right now. The point is I'm not wanting so much for ST as for more cores. 24 cores with Zen 6 would be most welcome for me.