AMD should have the funds to push both of these initiatives at once. If the ROCM team has political reasons to kill the competition, it is because they are scared it will succeed. I've seen this happen in big companies.
But management at AMD should be above petty team politics and fund both because at the company level they do not care which solution wins in the end.
Why would they be worried about people using their product? Some CUDA wrapper on top of ROCM isn't going to get them fired. It doesn't get rid of ROCM's function as a GPGPU driver.
If your AMD you don't want to be compatible till you have a compelling feature of your own.
Good enough CUDA + New feature x gives them leverage in the inevitable court battle(S) and patten sharing agreement that everyone wants to see.
AMD' already stuck its toe in the water: new CPU's with their AI cores built in. If you can get a AM5 socket to run with 196 gigs, that's a large (all be it slow) model you can run.
But management at AMD should be above petty team politics and fund both because at the company level they do not care which solution wins in the end.