Yeah, the scope of Nvidia doing Intel's IGPs would be HUGE. Nvidia would have to have access to Intel's foundry capabilities, which would put them a step ahead of TSMC and GloFo and give a huge edge over AMD/ATI (there's no way nvidia would agree to it without getting to use Intel foundries for their own discrete cards). It would literally rock the industry.
Intel should've bought nVidia a long time ago. This "partnership" the misleading headline seems to indicate should happen. Intel would just crush AMD/ATI if they could pull this off.
Use your billions for something smart instead of trying to reinvent the wheel you keep making square Intel!