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The big fish swallows the small fish: the Santa Clara GPU manufacturer has signed a definitive agreement with physics-processing-unit (PPU) manufacturer Ageia, according to which the latter will become a fully-owned Nvidia subsidiary.

Last summer Intel had acquired Ireland-based Havok- which was Ageia's biggest competitor, being used in more than 150 games- after seeing AMD fail in doing that. Now, Nvidia joined the "accurate physics-simulation" party by acquiring Ageia, although the technologies involved in the latter's simulations are neither spectacular nor impossible to reproduce using actual video-cards (one example is Crysis, but also PlayStation 3's Cell CPU, which operates in a similar manner).

To the moment, Ageia PhysX has been adopted by more than 140 PhysX-based games shipping or in development on Sony Playstation3, Microsoft XBOX 360, Nintendo Wii and Gaming PCs. AGEIA physics software is pervasive with over 10,000 registered and active users of the PhysX SDK.
"The AGEIA team is world class, and is passionate about the same thing we are—creating the most amazing and captivating game experiences," stated Jen-Hsun Huang, president and CEO of NVIDIA. "By combining the teams that created the world's most pervasive GPU and physics engine brands, we can now bring GeForce®-accelerated PhysX to hundreds of millions of gamers around the world."
"NVIDIA is the perfect fit for us. They have the world's best parallel computing technology and are the thought leaders in GPUs and gaming. We are united by a common culture based on a passion for innovating and driving the consumer experience," said Manju Hegde, co-founder and CEO of AGEIA. Financial terms of the deal were not disclosed but more details will be made available during Nvidia's conference call with investors, from February 13.