Basically NVIDIA will use the PhysX framework to run physics on their GPUs and there are also strong indications that they will try to give their IGP chipsets physics processing support.
A couple of weeks ago we heard that NVIDIA will give all high-end motherboards integrated graphics for Hybrid SLI, this technology will lower power consumption when you're not playing games and boost performance by running your discrete graphics card and your IGP chip in SLI.
I expect NVIDIA will try to give their integrated graphics chips support for physics too, if I'm right a large amount of NVIDIA-based motherboards will get "dedicated" support for hardware accelerated physics in the near-future and once the userbase is there more and more game developers may start thinking about implementing physics support in their games.