GPU-accelerated physics is turning out to be the one part of specifications AMD is yearning for. One of NVIDIA's most profitable acquisitions in recent times, has been that of Ageia technologies, and its PhysX middleware API. NVIDIA went on to port the API to its proprietary CUDA GPGPU architecture, and is now using it as a significant PR-tool apart from a feature that is genuinely grabbing game developers' attention. In response to this move, AMD's initial reaction was to build strategic technology alliance with the main competitor of PhysX: Havok, despite its acquisition by Intel.

In the upcoming Game Developers Conference (GDC) event, AMD may materialize its plans to bring a GPU-accelerated version of Havok, which has till now been CPU-accelerated. The API has featured in several popular game titles such as Half Life 2, Max Payne II, and some other Valve Source-based titles. ATI's Terry Makedon, in his Twitter-feed has revealed that AMD would put forth its "ATI GPU Physics strategy." He also added that the company would present a tech-demonstration of Havok technology working in conjunction with ATI hardware. The physics API is expected to utilize OpenCL and AMD Stream.