"When Intel hired Raja Koduri last year, it was clear the company was serious about graphics. Koduri has spent much of his professional career in graphics for AMD and ATI; bringing him on-board was a signal that Intel intended to invest into GPUs more aggressively than it had done before.
Intel’s Arctic Sound reportedly began life as a video streaming app processor intended for data centers before being repurposed by Raja as a full-on discrete GPU.
I don't think this is going to make much of a splash in the consumer market. It's likely going to help Intel improve their iGPUs to the point where an AMD will have real competition, but that's a low margin market, as is the graphics market outside the top end. If I had the money to bet I'd say they'll be targeting the high margin professional market dominated by Fire and Quadro which could help AMD if they go with OpenCL, which would further hurt nVidia's proprietary CUDA, especially as it is much more simple to develop software for a handful of programs rather than chase crackerjack game developers around like chickens with their heads cut off improving performance and squashing bugs.
According to this article : Intel Discrete GPU Codenamed Arctic Sound Will Have Gaming Variant Intel will produce a GPU card for gaming for the general Public around 2020. Since Intel and AMD have sort of a business arrangement now, it may benefit both AMD and Intel and less for Nvidia.
That may well be the case. If Intel also adopts adaptive sync (freesync) and Havok physics and most of the other open specs and then incorporates those into iGPUs, developers would have a much larger install base to code for (including all the AMD hardware in consoles) and ignore all the Gameworks nonsense.