Fulfilling Jensen's prophecy that Larrabee isn't a big threat, Intel has confirmed that the first Larrabee chips won't end up in consumer products. Despite the showing "how great" the Larrabee chip is, and the vast amount of money that Intel invested in this chip, it has become something that will used for development kits for third parties.

The first Larrabee chip hasn't lived up to the expectations and will not show up in retail during 2010 as Intel originally claimed. The fact those guys from AMD and Nvidia are doing a hell of a job in pushing the graphics card market beyond what apparently Intel think it would go, certainly didn't help Larrabee either.

Despite this "cancellation" of the first Larrabee, Intel is still keeping its hands on the discrete graphics card market, and whether it will be the second or third Larrabee that will reach consumers is still left to be seen but for now AMD and Nvidia are to remain the key players in this market.

Intel will keep working on Larrabee and is cooking something about it for the next year, but it will probably cut some money from that department so what and when will that be announced, is still left to be seen.

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Jensen believes that Larrabee is not a GPU threat