AMD somewhat forced Intel into this but it could backfire for Intel. AMD will use much larger integrated GPUs with advanced packaging and that's a significant threat. Now both Intel and AMD will do this, gunning for the lower 80+% of the discrete GPU market (in units) with their integrated GPUs.
This would leave Nvidia able to only compete at the high end, 250+$ retail. At that point Nvidia has two options, bet the farm on machine learning or merge with AMD minus AMD's GPU assets. Nvidia's market cap is insanely high at this point so they can easily afford to spend 20-30B in shares (and no cash) for AMD. Short term there are synergies so they can cut costs, mid term they can scale up R&D. Under the Nvidia brand they could gain share faster in PC -maybe aim towards 30% share in 2019- and they can gain some good share in server CPU too. The PC market goes away completely in less than a decade but they could gain scale today and buy a bit of time. Will Nvidia see such a move as a must, I don't know but they just might. Buying Mediatek could be a thrid option but not sure Nvida can manage that business.