Blog from the Microsoft SQL Server product team.
SQL Azure Reporting was announced at the PDC 2010 keynote!
SQL Azure Reporting enables developers to embed operational reports on information stored in a SQL Azure database, using ReportViewer in remote mode in your applications, with the cloud at your service, and no need to manage or maintain your own reporting infrastructure.
SQL Azure Reporting provides many of the features you know from SQL Server Reporting Services 2008 R2 to create your reports with tablices, charts, maps, gauges, sparklines, and more using the familiar Business Intelligence Studio, and deploy them on-premise or in the cloud. Literally take your report anywhere, and scale when and how you need it. Check out the webpage for more info, and sign up for the CTP.
You can get more details in this PDC video and this related blog post.