On March 2, 1991, AMD finally released its long-delayed Am386 CPU after six years of legal battles with Intel. The Am386 wasn't a failure of engineering but rather the result of a complex legal struggle that cost both companies $100 million and lasted until 1995. AMD's engineers had actually cloned the 386 in about two years.

When IBM chose the Intel 8088 for its PC 5150, it demanded Intel license the design to competitors. Intel complied, licensing to AMD and others. But when Intel released the 386 in 1985, IBM saw it as a threat to its minicomputer business and didn't push for second-source rights. This legal vacuum allowed Intel to block AMD's 386 release through litigation rather than technical superiority.

The Am386 proved competitive, running at speeds from 20 to 40 MHz and matching Intel's performance at equivalent clock rates. A 40 MHz Am386 could even keep pace with entry-level 486s. The legal delay forced AMD to remain a generation behind for over a decade, but it also established AMD as a legitimate competitor in the CPU market, setting the stage for future battles between the two semiconductor giants.