Just because Larrabee has been shelved doesn't mean that Intel isn't looking at graphics anymore. In fact, the Intel's background in processors means that it should be more interested than ever in ray tracing, which can product images with accuracy that surpasses even today's best GPUs.
At IDF, Intel is demonstrating a ray traced version of Wolfenstein on a laptop. The game's visuals have been bumped up with a few upgrades. While this is demonstrated on a laptop, all the grunt work is actually done from four servers running a Many Integrated Core (MIC) architecture. When the server is finished rendering a frame, it sends to it to the laptop for display.
Check out the video to see it in action and some more in the screenshots below:
