I'm seeing this as well with an Nvidia card (binary drivers if that
matters), I solved it by manually editing /usr/share/initramfs-
tools/hooks/framebuffer and commenting out the line

copy_modules_dir kernel/drivers/gpu

I've hit this same bug twice, when upgrading to 12.04 (a year ago) and
now that I tried to upgrade to 13.04. Of course, the upgrade process
halts without any explanation and you have to work your way through it
with a half working system.

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https://bugs.launchpad.net/bugs/706413

Title:
  update-initramfs hangs on adding gpu module

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