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Reverse engineering<\/strong>. Those images allowed the engineers to \u00a0decipher\u00a0 the design and architecture of the groundbreaking processor through \u00a0reverse engineering\u00a0. With their schematics and logical diagrams, they sought interest from various companies in \u00a0Silicon Valley\u00a0.<\/p>\n <\/p>\n The origin: Am9080<\/strong>. Eventually, \u00a0AMD\u00a0 seized the opportunity. At this time, the company was nascent, having just developed an \u00a0N-channel MOS process\u00a0 for chip manufacturing. By integrating this manufacturing technology with the reverse-engineered schematics, they launched the \u00a0Am9080\u00a0. While some sources state that sales began in 1974, mass production didn\u2019t truly kick off until 1975, marking \u00a050 years\u00a0 since.<\/p>\n <\/p>\n They cloned it and improved it<\/strong>. In a revealing 1997 interview, Hailey and Kailey explained that the \u00a0AMD\u00a0 chip was a \u00a0remarkable success\u00a0. It produced \u00a010 times\u00a0 more efficiently than Intel\u2019s, yielding \u00a0100 dies per wafer\u00a0. Moreover, it was \u00a0four times\u00a0 more powerful than the Intel 8080.<\/p>\n <\/p>\n They made them for 50 cents, they sold them for 700 dollars<\/strong>. The astonishing success of the Am9080 translated into a surge in demand, particularly from the \u00a0military\u00a0 and \u00a0defense\u00a0 sectors. Each Am9080 cost an estimated \u00a050 cents\u00a0 to manufacture but sold for an impressive \u00a0700 dollars\u00a0, resulting in a phenomenal profit margin.<\/p>\n <\/p>\n Intel ended up making a deal<\/strong>. This success positioned \u00a0AMD\u00a0 as a significant player in the semiconductor market, ultimately leading to a \u00a0cross-licensing agreement\u00a0 with Intel. This agreement enabled AMD to become a “second source” for Intel’s processors, fostering a mutually beneficial relationship.<\/p>\n <\/p>\n Why did Intel allow something like this?<\/strong> The agreement wasn\u2019t born out of generosity. During that period, securing lucrative contracts with defense agencies necessitated having a \u00a0backup\u00a0 supplier who could manufacture chips if the primary source encountered issues.<\/p>\n <\/p>\n Here peace and then glory<\/strong>. The conclusion was a deal where AMD paid Intel a mere \u00a0$25,000\u00a0 to sign, plus an annual fee of \u00a0$75,000\u00a0 for the licensing rights\u2014minuscule sums in the grand scheme. This agreement also shielded both companies from potential past legal issues.<\/p>\n <\/p>\n And finally, x86<\/strong>. This initial partnership was crucial in leading to a more significant agreement in 1982, allowing AMD to produce its own \u00a0x86 chips\u00a0. This marked a major turning point as it enabled AMD to develop its versions of chips using that architecture, starting with the \u00a0Am286\u00a0, a licensed iteration of Intel\u2019s 80286.<\/p>\n The rest, as they say, is history<\/strong>. This pivotal agreement transformed AMD into a formidable alternative to Intel, although for many years, it operated in the latter’s shadow. However, AMD expanded into the \u00a0graphics card\u00a0 market, which significantly lifted its valuation. Today, AMD boasts a market capitalization of \u00a0$410 billion\u00a0, ranking as the \u00a025th largest\u00a0 company globally, while Intel, struggling, sits at the \u00a096th position\u00a0 with a capitalization of \u00a0$182 billion\u00a0.<\/p>\n It\u2019s remarkable to think that this entire journey began with a few photographs taken under a microscope. AMD’s story is a testament to the power of \u00a0innovation\u00a0 and ambition in the tech world.<\/p>\n