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AMD Quietly Funded A Drop-In CUDA Implementation Built On ROCm: It's Now Open-Source
(www.phoronix.com)
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Presumably they did not want to see Cuda becoming the final de-facto standard that everyone uses. It nearly did at one point a couple of years ago, despite the lack of openness and lack of AMD hardware support.
They stopped funding the replacement, not CUDA.
That is contradicted by the headline. This easy confusion between CUDA (the API) and CUDA (the proprietary software package that is one implementation of it) illustrates the problem with CUDA.
ZLUDA seems to be an effort to fix that problem, but I don't know what it's chances of success might be.
It's just a bad headline. They funded a CUDA replacement, then stopped funding it, as a result of which the project was released as open source.