FUD Zilla reports Intel is working on an integrated graphics version of its Larrabee GPU:
This is something we got confirmed, but since Larrabee is still under development we cannot give you any date but we can only speculate it's realistic that Intel should not have this project finished by at least early 2011.
Larrabee reportedly has TDP issues, as its very tough to make a GPU and keep it under desired Thermal Design Power and TDP is very important part of Integrated Graphics Processor design, and therefore Larrabee IGP has still many miles to go, but at least it's in the plans.