FOLLOW UP: Intel Denies Larrabee Negotiations with Add-In-Card Makers.

Intel Corp. has initiated negotiations with China-based manufacturers of graphics cards regarding making products based on Larrabee graphics processing unit (GPU) due in 2010. The consultations mean that Intel is more or less confident that its first discrete graphics chip in more than ten years will emerge in 2010.

The chief executive officer of Intel – Paul Otellini – himself has talked to several China-based manufacturers of graphics cards to promote the Larrabee GPU, reports DigiTimes web-site citing sources among makers of graphics boards. The main aim of the visit of Mr. Otellini to the country was encourage manufacturers of graphics cards to use Larrabee, which means that the GPU project is very important for Intel.

Certain unnamed first-tier graphics card manufacturers remain rather negative concerning adoption of Intel Larrabee in the beginning due to the fact that the GPU may still have erratums or may not be competitive with ATI Radeon and Nvidia GeForce, they do expect Larrabee to have a chance of competing against the leading-edge graphics chips designers after a couple of years.

Although large graphics boards makers remain conservative about Larrabee, Intel reportedly proposed certain business schemes under which companies would receive preferential pricing when Larrabee is purchased along with other products or separately. While discount plans seem to be interesting it is unlikely that they will work since initially demand for Larrabee is unlikely to be comparable to demand to for Intel’s microprocessors or chipsets.

The world’s largest chipmaker earlier said that the first Larrabee GPU will be released in the first half of 2010 and then it indicated that Larrabee was due early in 2010.

Intel did not comment on the news-story.

Tags: Intel, Larrabee