According to this CNET article while Intel has not outright killed Larabee and will be releasing a SKD for Larabee sometime next year, there is no word if or when actual silicon will be released.
Larabee was Intel’s take on creating a GPU with functional units based on a modified x86 core with a vector unit attached for doing graphics and other FPU intensive applications. On paper the architecture looked interesting, but Intel has had problems with the design and prototypes did not perform up to expectation.
It looks like the traditional more specialized GPUs with processing units that support some more general purpose computing are the winners for now.
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