Really, I could see the possibility of an AMD license to cover Intels ass in the GPU wars. To me there was an almost even chance that Intel would either A) Licence Patents from NVidia again, B) Licence Patents from AMD, C) Figure they have differentiated their design and key patents have expired, so they can ignore A) and B).
But Radeon IGPs inside Intel future CPU packages?
AMD would be pretty much giving up the only advantage their soon to be released, and finally competitive APUs with Zen/Vega internals.
That part of the rumor never made any sense, it would be like racing a marathon behind one of your competitors and catching him right near the finish line, only to give him a nice shove across it, to make sure he finishes first.
I also don't think Intel is concerned enough about the IGP to want to adopt AMDs design.
Intels CPUs with AMD IGP is something that has always seemed absurd.