Last year I've written about NVIDIA aiming for doing more general computation and INTEL going for more specialized, parallel vector computation. Since then we got tons of more info about Larabee, CUDA, Stream SDK, OpenCL, DirectCompute etc – all indicating that there might be a fusion one day.
According to a well-known german IT-News Site, INTEL revealed at the IDF09 that at the end of 2010 something called Advanced Vector Extensions (AVX) will be added to DIE of the processor generation named "Sandy Bridge". At a later time, this will be the place for the Larabee integration. Prior to that – in early 2010 – intermediate versions will be available where the INTEL's CPU / GPU mix will in the same box.
Sounds like this won't be "one" unity but separate units very, very close to each other. Obviously this will increase the speed of data-sharing.
"The CPU and the GPU create a co-processing environment where we have the CPU operating on very complicated sequential codes and the GPU operating on massively parallel applications."
Jen-Hsun Huang, NVIDIA’s President and CEO