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 that is truely great news, not only will it mean faster adoption of physx but CUDA as well. And it means there won't be a long drawn out battle to create a standard. I never thought I would see ATi agree to a nVidia API, but I am happy to see that they have.