What a classic business move, they try to cut off Nvidia and take the physics marketshare before Nvidia gets Ageia physx ported to CUDA.
http://www.nordichardware.com/news,7352.html
No matter what, great physics is just around the corner, either on CPU multicore or GPU. I look forward to see benchmarks, and especially if physics on really run 10 times as fast on GPU and efficient as they say.
Before nVidia has a chance to develop effective PhysX processing for stream processors, Intel tries to corner the market with a new offering from Havok. Note they still killed Havoks gpu physics program.