This is really impressive. check out the demonstration of advanced lighting effects with the Wofenstein games using intels MIC architecture. it uses many of the same architectural designs of the (canceled)? Larrabee. (I thought it was a misnomer that Larrabee was canceled, but OK.
Larrabee, the second discrete iteration (the GTX 285 analog) was cancelled as a retail product late last year. Intel is still developing the Larrabee GPGPU project (and the tech that can utilise it) for a possible launch in future.
My guess is that it is part of Intel's long term strategy for diversification once the laws of physics and economics catch up with processor development. Hence the branching out into the software and mobile space. Ray tracing (or a hybrid ray trace/rasterization) looks to be a promising method of improving graphics...a conclusion that I'm sure prompted nvidia to acquire RayScale in May 2008- the resultant use of IP is being developed through the OptiX SDK. I seem to remember that AMD also demo'ed a ray trace (Ruby) a couple of years back but I haven't heard whether this was followed up on, or widely available in the same manner that nvidia's Design Garage is.
