http://www.anandtech.com/weblog/showpost.aspx?i=659:snip:
We just got off the phone with Nick Knupffer of Intel, who confirmed something that has long been speculated upon: the fate of Larrabee. As of today, the first Larrabee chip’s retail release has been canceled. This means that Intel will not be releasing a Larrabee video card or a Larrabee HPC/GPGPU compute part.
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This is too bad. I was hoping for more and better video cards and the benefit of increased competition. I've seen this sort of thing happen in other industries. I'll give you a possible scenario...
If mega-company A (in this case Intel) can't figure out how to produce something themselves, they go out and buy a smaller company that already makes what they are struggling to produce. This is just pure speculation, but if it happens you read it here first.
Nvidea is struggling to get their Fermi DX11 architecture to retail. ATI released their DX11 cards over 2 mos. ago. We still have no release date in sight for Fermi. Still months away, at this point. Nvidea could fall WAY behind ATI. Possibly releasing their 1st gen DX11 card while ATI is poised to release their next gen card. If this were to happen, Nvidia could get behind the 8 ball financially and Intel could buy them up.
Just some idle speculation, but stranger things have happened.
:edit:
Posted post before it was finished.