AMD has been talking up its new CPU/GPU hybrid chip since February that is called Llano. The new processor would put the graphics right on the CPU for performance and less space.
AMD CEO Dirk Meyer talked at the AMD earnings call about Llano a bit. Meyer reportedly said Llano would see volume production in the latter half of 2010.
Meyer also stated that Llano is already sampling to select customers. Apple is also rumored to be one of these select customers, which dovetails nicely with the rumors that Apple is looking at AMD processors.