> Hardware isn’t where the margins are

Baseless speculation

> probably is somewhat of a loss leader for small-batch users

Wrong. AMD/Xilinx doesn't sell devices directly to customers, they sell them to distributors in huge quantities. Those distributors then sell them to "small-batch users", and they're not involved with AMD/Xilinx free-tier software at all.

> they’re running at around -10% profit on small sales to try and drive subscription revenue multipliers

More baseless speculation