Intel: Initial Larrabee graphics chip canceled

Intel said Friday that its Larrabee graphics processor will initially appear as a software development platform only.

This is a blow to the world's largest chipmaker, which was looking to launch its first discrete (standalone) graphics chip in more than a decade.

"Larrabee silicon and software development are behind where we hoped to be at this point in the project," Intel spokesman Nick Knupffer said Friday. "As a result, our first Larrabee product will not be launched as a standalone discrete graphics product," he said.

"Rather, it will be used as a software development platform for internal and external use," he added. Intel is not discussing what other versions may appear after the initial software development platform product, or "kit," is launched next year.

Graphics chip analyst Jon Peddie, president of Jon Peddie Research, said Intel is not hitting performance targets and this became apparent at the SC09 supercomputing conference last month.

"Justin Rattner (Intel Senior Fellow) demonstrated Larrabee hitting one teraflop, which is great but you could walk across the street and buy an ATI graphics board for a few hundred dollars that would do five teraflops." A teraflop is 1 trillion floating point operations per second, a key indicator of graphics chip performance.

Larrabee, a chronically delayed chip, was originally expected to appear in 2008. It was slated to compete with discrete graphics chips from Nvidia and Advanced Micro Devices' ATI graphics unit.

Intel would not give a projected date for the Larrabee software development platform and is only saying "next year."

Intel says its plans are unchanged to deliver this month the first chip with graphics integrated onto the CPU. This new Atom processor is referred to as "Pineview" (the platform is called "Pine Trail") and will be targeted at Netbooks.

Updated at 4 p.m. PST throughout.