Bright Side of News speculates Larrabee may be the real reason why Pat Gelsinger left Intel to join EMC. The site argues Larrabee is at least two years late, that the performance will lag behind offerings from NVIDIA and ATI, and that the project cost Intel a lot more than initially expected.
This will put a 45nm Larrabee against 28nm next-gen chips from ATI and nVidia, even though we know the caveat of using 45nm Fabs for the job. According to our sources, in 2011 both ATI and nVidia will offer parts with around 5-7TFLOPS of compute power, surpassing 10TFLOPS on the dual-ASIC parts. According to information at hand, Intel targeted 1+ TFLOPS of compute power for the first generation, i.e. less number crunching performance than ATI Radeon HD 4870 and nVidia GeForce GTX 285. With Larrabee coming in 2011, the company did revise that number to raise available performance.
We learned about the estimated cost of Larrabee project, and if there wasn't for best-selling Core 2 series, this project would seriously undermine Intel's ability to compete. To conclude this article - Larrabee was Gelsinger's baby, project got seriously messed up and somebody had to pay the bill.