Well, Nvidia isn’t directly involved here at all, they’ve only commented on the issue once (to say that they don’t block other companies’ upscaling). The objections tend to come from users, the majority of whom have Nvidia cards and want to use what is widely considered the superior upscaling technology.
https://www.bbc.com/news/technology-65789916
Apparently it was a story told by an Air Force colonel at an aeronautics conference, who later retracted it.