http://www.tomshardware.co.uk/answers/id-1795959/mobo-onboard-graphics-cpu-integrated.html
Back in the day, some motherboards would come with an integrated GPU into the south bridge chipset, usually a very basic intel or amd or nvidia one. It would allow surfing and that was it. it was mostly for people who didn’t have a GPU.
Eventually they started to add GPU’s right to the CPU to make whats called an APU. This allows the graphics to run better since they are right with the CPU, they can share the memory controller at the lowest level, send info back to the CPU the fastest possible way, etc. Intel has it in their latest i3/i5/i7 series of chips, usually being the 2000/3000/4000 series with respect to better chips have a better GPU. The intel ones allow for HD video, HD youtube, etc and that’s about it. They are still no good for gaming.
AMD has their APU series, the A4, A6, A8, A10 series. Their built on GPU is far better than intels. AMD is a graphics card company and has the experience to add it to the CPU and you can actually do some basic gaming on them as well as full HD video, etc. For a basic PC that is going to be surfing, online video, watching , etc, I like the AMD A-series chips. I’ve built about a dozen of them for older people, basic surfing users, etc and none of them have had any problems with the use they use it for. A few were even surpirsed when their kids or grandkids wanted to use the PC and play a game or two and it played and they only bought a basic system.