Details have surfaced at The DailyTech in relation to a new engine in the works from NVIDIA, this to coincide with the release of G80. It's dubbed their "Quantum Physics Engine" and is set to take on AGEIA's own PhysX card.
To get an idea on how it works have a read of the article here.
With the release of the G80, NVIDIA will also release a new engine dubbed Quantum physics engine. Quantum Effects Technology is similar (at least in spirit) to NVIDIA's PureVideo Technology. A few documents alluding to this new engine appeared on public FTP mirrors late last week.
Quantum utilizes some of the shaders from NVIDIA's G80 processor specifically for physics calculations. Physics calculations on GPUs are nothing new; ATI totes similar technology for its Stream Computing initiative and for the Triple Play physics.