"Why," questioned a high up at one of the established graphics chip firms, "would Intel want to do this? It doesn't make any business sense."
That may not matter, Intel has made plenty of investments in the past that have turned out to be turkeys. It would have the effect of thoroughly messing with the brains of Nvidia and ATI.
And as the long toothed will remember, not that long ago Intel bought in the 740 grapgics chip from Lockheed. Not that that venture had exactly a long and illustrious life.
As the world+dog know, Intel is already dominant in the integrated graphics chipset market.