We had a very similar thread about this not to long ago.
Although the financial reasoning sounds pretty sound, it wasnt very long ago Intel had full intent to enter into the dgpu market. Not only was the intent there, Intel actually invested heavily in what would end up being a massive blunder. The truth is that Intel had a real drive and planned to take the dGPU market all to themselves.
But what went wrong?
There is a truth to the IP roadblocks that some people have brought up. But surely intel has enough talented engineers they should be able to out class everyone else. Well, it is much more complicated.
There was some major issues that made making a graphics chip without using IP almost impossible. The graphics market was built over time. And it was built along with DX. HW was built around DX and makes creating a whole new graphics design without infringing becomes very very tricky. This HW must work inside very established boundaries.........
or so you would think
This brings me to the biggest fault with the larrabee project there ever was. Ambition that exceeded rationality. Intel decided they would completely and radically convert the entire graphics industry using a 100% programmable x86 cores GPU. If they actually succeed with this insane plan, they would have cut out Nvidia out forever. Nvidia had no access to x86.
It was a command from higher management, build a GPU from x86 cores. This GPU would work unlike anything ever in the graphics space. But this wouldnt stop intel. They were lobbying hard to sway the entire industry towards this new direction. But not only was this a wild ambitious and impractical plan, the truth is that GPUs built on x86 cores were not well suited for the current GPU task at all. Sure they were able to show off high flops and even ray tracing. They even complied a game (quake I think) that could run on a larrabee chip. I mean, the performance in certain task was good. Its just that these chips made really really bad GPUs, as in the GPU as we knew it. Emulating everything with x86 was extremely slow and ineffectual. They never became DX or OpenGL compliant. This is the paradox of larrabee.
It was a very bad idea from the start. A radical shift is one thing but this shift didnt even look like it had any real kind of pay off. You cannot expect the entire industry to drop everything they were doing and go in a direction of the unknown, especially with the progression that had happen since the dawn of fixed function HW. Larrabee was not the future of gaming, it wasnt even the future of intel graphics. For that, Intel management had a complete and total change of heart.
It should be no secret that Larrabee was pushed out of a huge fallout between Intel and Nvidia. One that was bitter and fierce. This fight started behind closed doors but I believe the rumors of Intel looking to buy Nvidia is where it all started. There were very early rumors that leaking out before AMD bought ATI. In this very thread people were posting about AMDs purchasing ATI and whether it was the right move. But if we look at the back stories, things look a lot different. Many might remember the rumors of AMD looking to buy Nvidia, this was supposedly way before AMD bought ATI. AMD actually got nowhere far with Nvidia but most people dont realize that Intel was looking into these companies after AMD was trying to work out a deal. This could have been how ATI managed to get such a hefty sum out of the deal. AMD was afraid they would loose their planned edge and went all out to make it happen. AMD buys ATI in 2006. Most people dont realize that this purchase had an immediate effect on Intel/ATI dealings which pertained to chipsets and IGPs (Intel announced SiS IGP chipsets).
It wasnt to long after that, Intel set out to stop Nvidia from making chipsets and IGPs for their chips. Nvidia was cut out. I believe this relationship was under strain because intel's attempt to strong arm Nvidia. What would intel want with nvidia? Because at the time they took AMDs fusion/vision very very seriously. So in the middle of all this drama, Larrabee became a top priority and a real headliner in the media. There was a real battle happening, a power struggle......or better, intel through a power fit.
But Larrabee became laughabee and intel upper management had a real change of heart. They were forced to enter a cross licensing deal with Nvidia. And this deal gives the specialized IP and technology which can be found inside of intel's integrated graphics chips today. After the deal with Nvidia, Intel was able to put a gpu on the same die as the CPU much faster than even AMD could. Intel rushed to get ahead, not realizing that AMD was actually well behind them. Nonetheless, Intel beat AMD to the punch and AMD's fusion was never became the huge advantage it could have been.
Often the back story is very important in conversations relating to technology. Now a one thing should be clear even if my version of the history is my own perception as i remember it. With all the wealth in CPUs, Intel did go after the dGPU market in the past. It was an expensive effort that failed. So this market was worth it to them in the past, they wanted to corner it.
Intel has since created a very efficient igp. It is very respectable. But there are many who dont seem to realize that Intel is paying Nvidia a very hefty sum for IP and technologies. The fine details are not made public but at the time of the agreement Nvidia was into very little things except GPUs. After Intel failed with larrabee this license agreement with nvidia emerged. Then after this cross license agreement, Intel igps drastically improved. I do not see how there are people who cannot accept these things are connected but personally it is very very clear to me. Nvidia has spoke some on this cross licensing and have verified that although Intel isnt an Nvidia design, Nvidia technologies exist inside of Intel IGPs such as the one in Sandy Bridge. We also Know that as part of this deal, Nvidia is not allowed to make a CPU that can run x86 code. This is important because if you know how the Denver CPU works, it would/could have been used on x86 like it does ARM today.
I remember when the sum of the Intel/Nvidia cross license deal went public, people were saying that AMD should have fought for a better deal. But AMD agreed to settle an anti trust lawsuit while Nvidia and Intel signed a large cross license agreement. Nvidia of course dropped the lawsuit as well but the two are different scenarios
Nvidia/Intel cross licensing totally prevents Nvidia from perusing an x86 capable CPU, does anyone think that Nvidia would so dumb to not have provisions that keep intel from making dGPUs with their technologies? Both of these companies are very arrogant and fierce. Nvidia protects its technologies and hold them very very close to their hearts. The intel IGP as we see it today will not be made into a dGPU, there is almost no chance of this happening.
I just want to end this with something that I think both Intel and AMD have learned since they started dabbing into GPU businesses. They learned that GPUs are very very different that CPUs. They are anything but simple. I think both of them (from a management standpoint) had completely underestimated the complexity and were totally blind to how advanced they really were. There is little chance Intel could build a dGPU that will work in current games without using existing technologies. Heck, Nvidia and AMD are the backbone behind DX, it is an extension of their HW. Sure, nothing is impossible. But intel really really tried with larrabee. They put billions into the project. They went back to the drawing board many times, completely redesigned larrabee many times. They had massive engineer teams around the world working on it. It drastically changed from a pile of CPUs to something more like an x86 GPU. Many engineers walked off the project, even high profile people just left. There were many many issues that were extremely difficult to work out. They never were able to after billions of dollars
See GPUs as we know it were built over time. Extremely complex designs built on top of even more complex designs. Years and years in the making. There used to be GPU makers in the double digits and this filtered down to the few we have today. Current designs are on an unimaginable scale. Built on foundation after foundation. We are so far now that starting from scratch with a completely different route is next to impossible. Especially if you want them to work within the boundaries that graphic cards must work in today (DX, OGL). It is just not a reasonable quest. Intel at least proved that much with larrabee.
So Yeah, sure intel could make a dGPU.....
But look at how we got here and see if you think its a real possibility