Tom's Hardware had a chat with AMD to hear the company's response regarding the announcement from Intel that the first-generation Larrabee is largely cancelled, you can read it over here.
"From the outset, we have seen Larrabee as further validation of the importance of visual computing. We continue to assert that GPU technology is essential to the computing experience, today and tomorrow," Dave Erskine, Graphics Public Relations of AMD, told Tom's Hardware. "AMD is the technology leader in GPU technology for 3D graphics, video and GPU Compute."
"With only CPU, or GPU, a company is limited in its ability to respond to the needs of the industry," Erskine added. "AMD is the only company in command of both GPU and CPU IP portfolios, and in response to the clear direction of the computer industry we’re bringing CPU and GPU together in Fusion."
"It really comes down to design philosophy," said Erskine. "GPUs are hard to design and you can’t design one with a CPU-centric approach that utilizes existing x86 cores."