Looking at this I understand why AMD wanted to purchase ATI. It seems GPU makers understand parallel computer design a helluva lot better than AMD's engineers. I hope the next wave of processors after Barcelona will have ATI engineer input. Intel has had a graphics division that understands these concepts for a LONG LONG time already and AMD needs to catch up. GPU makers have proven that no other mainstream hardware does raw mathematical computation faster than their graphics engines. CPUs need that type of power onboard for general purpose computing.

"will be capable of processing “well in excess” of a teraflop of data"
What type of Data is a good question. because I doubt it would be 64bit double precision FPU code.

But a plus point to this though is that they opened the way to realtime raytrace graphic gaming. Actually it's a hint that Intel wants to Compete against Nvidia and Amd (ATI) by spearheading the next generation in realtime graphics. It can't crunch OpenGL or DirectX but there is such a thing as OpenRT.
This is something I am keeping an eye on.
But then again I read that the Nvidia 8800 and Ati 2900 are also capable of realtime Raytracing.

Hmm, seems like these Teraflop processors are gonna be server only for a good while