https://en.wikipedia.org/wiki/Intel_iAPX_432#Object-oriented...
[1] https://community.arm.com/developer/ip-products/processors/b...
But the most likely possibility is that the plan was too grand for the time (note, this was 197x to ~ 1984ish, the IBM PC with its 8088 had only been on the market about three or so years) and therefore much too expensive for any market to bear.
Additionally, the iAPX432 was being worked upon during the same time that the IBM PC suddenly brought the x86 chips to significant popularity.
Combine the concepts of pouring money into an arch. that was too big and grandiose for the integration tech. at the time, with a sudden influx of profit from the x86 chip line, and it seems that a likely reason was simply to devote resources to the chip line that was suddenly producing those same resources.
The Wikipedia page (https://en.wikipedia.org/wiki/IAPX432) also says this about the '432:
"Using the semiconductor technology of its day, Intel's engineers weren't able to translate the design into a very efficient first implementation. Along with the lack of optimization in a premature Ada compiler, this contributed to rather slow but expensive computer systems, performing typical benchmarks at roughly 1/4 the speed of the new 80286 chip at the same clock frequency (in early 1982).[7] This initial performance gap to the rather low-profile and low-priced 8086 line was probably the main reason why Intel's plan to replace the latter (later known as x86) with the iAPX 432 failed. Although engineers saw ways to improve a next generation design, the iAPX 432 capability architecture had now started to be regarded more as an implementation overhead rather than as the simplifying support it was intended to be."
The main reason that AMD (and others) manufactured x86 CPUs early on was because IBM had a 'second source' requirement; i.e. there had to be another vendor who could provide the same part.
So an AMD 286 was no different from an Intel 286.
By the time of the 386, IBM had relaxed/dropped the second-source requirement. Thus the Am386 isn't the same design as the i386 (and there was a court battle to try to keep the AMD part out of the market.)
tl;dr - Intel never wanted to license at all.
Court battle was over 287 and later Am486. AMD announced clean-room design ... and gave their clean room engineers 386 microcode copy :]
RISC, which in some senses is the polar opposite of the approach taken with the 432, also started to generate a lot of interest at about the same time.
There is an excellent paper by Robert Colwell exploring why the 432 was slow and how it could have been speeded up:
https://dl.acm.org/doi/10.1145/45059.214411
Colwell was subsequently recruited by Intel and went on to play a major role in the design of the Pentium Pro.
My guess it is it was something like the "AI Winter:" a hyped idea fails in in a high-profile way, so it gets shunned for some period of time because people are afraid of failing again in a similar way. It seems like some of the features of that processor lead it to be a nonstarter for practical reasons:
> According to the New York Times, "the i432 ran 5 to 10 times more slowly than its competitor, the Motorola 68000".
Back then, personal computers didn't have much performance to spare.
IIRC, Intel has had several high-profile failures when radically new non-x86 CPU architectures. Only backwards-compatible conservative evolutions of the x86 seem to get traction.
https://www.cl.cam.ac.uk/research/security/ctsrd/cheri/ is more what I was thinking