We simulate fragmentation and gravitational collapse of cold, magnetized molecular clouds. We explore the nonlinear development of an instability mediated by ambipolar di †usion, in which the collapse rate is intermediate to fast gravitational collapse and slow quasistatic collapse. Initially uniform stable clouds fragment into elongated clumps with masses largely determined by the cloud temperature, but substantially larger than the thermal Jeans mass. The clumps are asymmetric, with signiÐcant rotation and vorticity, and lose magnetic Ñux as they collapse. The clump shapes, intermediate collapse rates, and infall proÐles may help explain observations not easily Ðt by contemporary slow or rapid collapse models.