Intel is working on Larrabee, its own high performance video processor for desktop computers, and expects to have the product on the market in early 2010. The processor is in the debugging phase now, and could potentially compete with video processors from ATI and Nvidea when it's released.
Unlike Intel's integrated graphics products that rely on the same RAM used by applications in a computer, Larrabee is designed to be part of a video card and can use its own dedicated memory for faster and more efficient performance.
Apple currently relies on Intel's integrated graphics chips in some of its computers and Nvidia video cards for its higher performance machines, but has not said if it will consider using Larrabee-based video cards when they are available.
[Thanks to Seeking Alpha for the Intel Q1 earnings call transcript.]