The Inquirer writes ATI may make its own physics API.
ATI MIGHT just make its own subset Physics API and make its life easier. Ageia, of course, has its own while, at this time, Nvidia's API relies on the Havok engine.
Physics on 3D hardware is the hottest trend around and all three companies have to support it one way or another.
Ageia has the hardware and the API and it managed to convince 60 companies to go its way. The biggest title lined up is of course, the delayed Unreal Tournament 2007. But, don’t forget that there will be a lot of games based on the Unreal tournament engine so there will be even more Physx titles around.