I remember reading through some Nehalem articles mentioning that Intel will actually beat AMD to the CPU/GPU on the same package with AMD delaying Fusion.

Ah, here it is: http://www.anandtech.com/cpuchipsets/intel/showdoc.aspx?i=34...

Of course, if it ends up being a G45 class chip, it's not going to be much to write home about (performance wise). Hopefully it ends up being a Larrabee variant, but that might be hoping for too much.

I'm interested to see what AMD and Intel end up doing with an on core GPU. It could be really interesting from a GPGPU perspective as you could eliminate the current need to ship things from main memory to GPU memory.