Apparently AMD has been talking about doing a very integrated, very low cost K8 derivative for 2008. The CPU would feature an on-die memory controller like the current Athlon 64, however it would also feature an on-die graphics core and I/O controller - effectively removing the need for any chipset on the motherboard.Full article at AnandTech
AMD planning K8 processor with integrated graphics

AnandTech takes a look at the roadmaps of AMD, ATI, NVIDIA, VIA, SiS, ULi and others for the coming years. The article is about processors, chipsets and memory. They also has some details regarding AMD's plans to ship a budget K8 processor with integrated graphics.