FUD Zilla reports NVIDIA is attempting to develop its own "Fusion" chips. While AMD is trying to integrate the GPU into the CPU, NVIDIA is doing it the other way around, the GPU maker plans to equip its future chips with more and more CPU features.
Since one could be able to run heavily modified OS on Fermi, Nvidia is one step closer to get a CPU, but not a traditional one. Nvidia agrees with ATI on at least with one thing, Fermi and especially the next generation Fermi want to get to the place that ATI promised us with Fusion.
Fusion for ATI is a CPU and GPU on one chip, fully integrated and interconnected, and for Nvidia Fusion will be Fermi 2 that will get even more CPU features. Nvidia will do that simply to run computation applications faster, but if it gets pushed, it can probable announce a chip that can run an OS and be a good computation GPU.