Could Intel be looking to compete with nVidia and AMD/ATI? That seems to be quite a possibility, primarily with their new focus on their "Visual Computing Group" and their newest job openings. Given their long history of doing embedded and workstation graphics, they're no stranger to integration, and have all the manufacturing capabilities to compete. The question is whether or not they can catch up on a decade of enhancements in 3D acceleration. What will their focus be? Most likely, I would say they are going for high end workstations and CAD machines, competing with things like the Quadro. After that, home entertainment seems likely, with their focus on the "digital home" and tags like Viiv.

As an integrated graphics provider, they already dominate the market.