Intel had an opportunity to differentiate themselves by offering more VRAM than Nvidia is willing to put in their consumer cards. It seemed like that was where Battlemage was going.
But now, are they really going to undermine this partnership for that? Their GPUs probably aren't going to become a cash cow anytime soon, but this thing probably will. The mindset among American business leaders of the past two decades has been to prioritize short-term profits above all else.