We know that Havendale is Intel's first GPU on CPU processor scheduled for launch in late 2009 and AMD has been talking about its GPU + CPU since late 2005. This was one of the key reasons for reaching the hands and acquisition of ATI.
The original GPU inside CPU, the first Fusion chip for desktops, codenamed Swift, should have been the RV710, but now we are hearing that the GPU might end up updated. The RV710 is a 55nm chip that should launch any day now, with a 64-bit memory interface; and naturally it is small and not that hot. This is something you can consider putting in a chipset or eventually in a CPU.
There is a big indication that the RV810, a 40nm low-end core, might actually replace the RV710 in Swift chips. Since we know that the Swift CPU is 45nm and that GPU would end up at 55nm with RV710 or 40nm with RV810, you can imagine that we are talking about two separate chips and a multi chip module (MCM) approach. The MCM bit is something that needs to be confirmed.
We can only hope to see this chip in 2009, but it looks like a 2010 solution to us.