According to Kyle Bennet, Editor-in-Chief at HardOCP, who originally started the rumor back in December last year, a licensing deal between Intel and AMD is already signed and we could be looking at a special processor that could combine an AMD GPU with Intel Kaby Lake-based CPU.

In a forum post, Bennet also notes that this could be a multi-chip module (MCM) with AMD GPU separate from the CPU die and not an on-die component. This means that AMD will supply the GPU die and the final chip will be built by either Global Foundries or TSMC.

This could give AMD a much needed boost and also give Intel a processor with decent GPU, better than what you would get with Intel's IGP. On the other hand, such CPU would become a real competition for AMD's upcoming Raven Ridge APUs, based on Zen CPU architecture and GPU that could offer RX 460-class performance.

In any case, it would be quite interesting to see such a CPU and, according to Bennet, we might see it by the end of this year.