Without this deal, China would be forced to buy x86 chips from the USA for at least the next 20 years. China was never going to develop a CPU architecture on their own,
This is fantasy land. Huawei already has several generations of ARM-based server CPUs and you can find Chinese processors powering top supercomputers.
They're much further along than you give them credit for, although it must be noted that Huawei is not using custom cores, but rather ARM-designed cores.
x86 was literally the USA's ace in the hole
x86 is no ace. Within 10 years, if not sooner, x86 will already be a second-class citizen of the cloud.
Do you know exactly what they handed over? Was it HDL, RTL, net lists, full layouts, etc.? It makes a BIG difference. AMD's rebuttal says they protected their IP, so either they're lying (which, being a publicly-traded company is probably both securities fraud and exposes them lawsuits by their investors) or you don't know what you're talking about.
the worst part about it is AMD didn't even need the money. Zen had already turned the company around.
In early 2016? No. They surely needed this revenue to help get Zen out the door. Otherwise, they might've had to lay off employees and Zen would've been delayed. They were in pretty bad shape, back then, and such a big product launch (new chipset, new desktop CPU,
and new server CPU) takes a lot of money. Even after launch, it takes a while for revenues to ramp.
BTW, I didn't like this news, back then. I still don't, but if AMD truly protected their IP, then I accept it as a last resort to get the funds to keep the doors open and the lights on until Zen's launch.