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Every vendor does not have their own set of extensions. Different x86 chips have different extensions (from a pre-defined set) - I don't see panic about x86 fragmentation.

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It's not panic but this is really annoying like with AVX-512. The side effect is that people are making choice for the target architecture.

Is there any difference between AMD and Intel these days in terms of instructions other than AVX512?

Not aware of any but there are significant extension variations even within Intel e.g. lack of AVX on Atom.

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