The Intel "Larrabee" platform, set to be the company's latest incursion into the graphics chip market, has experienced a setback.
Intel had hope to launch a discrete Larrabee graphics chip, but according to representatives from the company, that project has been cancelled.
That's because both silicon and software plans are not far advanced - instead Intel will create a software development platform which it will use internally and offer externally.
The move is a setback to Intel, but will come as a relief to both Nvidia and AMD-ATI - they effectively own the graphics chip market.
At a technical conference held at AMD's Lone Star HQ in Austin last month, senior executives at the company cast doubt on Intel's ability to get enough graphics performance out of its Larrabee project.
AMD has plans to introduce Fusion in the next eighteen months - a project that will effectively combine both graphics processing unit and microprocessor on the same die.