Because they can.
AMD's die size is SMALLER per 4 cores than Intel's is, and they are getting better yields than Intel is. Seriously it costs roughly half as much as it does Intel to make a quad core, and then it gets worse:
-AMD's CCX design allows them to simply piece together 4 x 4.0GHz quad cores for moar cores and cache. That's why AMD will have a 4.0GHz 16-core. Something Intel can only dream of.
-AMD's design is more efficient as well. So AMD's 16-core will likely be 180w while Intel will be lucky to get a 3.5GHz 18-core that uses less than 220w.
AMD will make more money on each 16-core sold than Intel will on each 12-core sold, and they desperately need marketshare in the server space. I will be the first to admit that I thought AMD would charge more for Threadripper, but they need the marketshare; and they will make PLENTY of money at these prices. The server market is tough to get into, and so they need to be merciless to get contracts. They need to make it so a company will be at a competitive disadvantage if they don't switch.