You may recall a recent article on Nvidia's offer to ATI. Nvidia gave ATI the opportunity to use PhysX if they took up CUDA. Well, the result from this offer has been agreed! ATI have decided to go with Nvidia; this is not a huge surprise as ATI could have been out of a job if it didn't take up PhysX. Nvidia could easily force it upon game developers.
You may also remember ATI showing off its R600 GPUs with a demo of falling bricks. This was designed to discourage Ageia. They claimed that the R600s could process physics better than the PhysX card itself. Now that Nvidia can run PhysX on CUDA, ATI should be able to do the same. Both sides need to work and improve this complex piece of code.
The Big Lime Greens will surely be the first with PhysX on their graphic drivers, but we are sure ATI will follow soon enough. ATI does have a good position at the moment; they have now joined with Nvidia's PhysX and Intel's Havok, a WIN-WIN situation.
Wow! If that's true that's a pretty big deal. If both AMD and Nvidia use CUDA that puts them in a pretty strong position against Intel since by the time Intel shows GPU accelerated apps CUDA should have a pretty strong hold on the market in that sector.
This is total speculation, but maybe, with the impending entrance of Intel into the GPU market we'll see an AMD/Nvidia teamup somehow? Things are going to be interesting in the not to distant future. One thing's for sure, Nvidia is going to have to do something, otherwise it will be facing off against two companies with potentially strong GPU/CPU offerings versus Nvidia's GPU only offering.