It was only about two weeks ago that Intel CEO Paul Otellini said that the rumors of its Larrabee graphics chips' demise were greatly exaggerated. Late last year the company said that it was yanking its hardware project and concentrating on Larrabee as a software platform, but Otellini suggested that details about the project were being rushed out to the public and basically we should stay tuned.
But today Bill Kircos, Intel's director of product and technology media relations, blogged that "We will not bring a discrete graphics product to market, at least in the short-term." Meaning, Larrabee hardware is dead once again. Instead, there's apparently a server-based project that can make use of Intel's exploration of the many-core chips that were supposed to be Larrabee discrete GPUs.
Kircos says the company will be emphasizing its integrated graphics solutions, which a majority of computers use, but that don't give Nvidia or ATI much of a threat when it comes to game playing. The caveat "in the short-term" dangles a sliver of hope you may one day have an Intel graphics card in a future PC, but I wouldn't be holding my breath.