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For a high performance CPU I would expect the second approach, eventually using RTL only to connect the single blocks like adders, shifters, comparators etc... but looking at some projects available on GitHub (for example Pulp RISC-V CPU https://github.com/openhwgroup/cv32e40p/blob/master/rtl/cv32e40p_alu.sv) the ALU is always fully coded in RTL.
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