Arc has already caught up to Nvidia. The latest Nvidia GPUs are a disaster (the 4060ti is being universally mocked for its very pathetic performance), they're intentionally royally screwing their customers.
The A750 and A770 are tremendous GPUs and compete very well with anything Nvidia has in those brackets (and Intel is willing to hammer Nvidia on price, as witnessed by the latest price cuts on the A750). Drivers have rapidly improved in the past few quarters. It's likely given how Nvidia has chosen to aggressively mistreat its customers that Intel will surpass them on value proposition with Battlemage.