NIVIDIA to acquire Ageia

After reporting its first ever billion-dollar quarter, Silicon Valley-based chipmaker Nvidia has announced planes to purchase chipmaker, Ageia.

While Ageia’s might not be a household name, the company was responsible for the world’s first dedicated physics processor in 2006. The chip was designed to handle real-time physics calculations for more impressive and diverse visual effects in games. Ageia’s PhysX software is also currently being used in all three current generation consoles.

Terms of the deal haven’t been disclosed to the public just yet or when it might go through, as usual, these kind of multi-million dollar deals are subject to pending regulatory approval and closing conditions.

If this deal goes through, It will puts Nividia in direct competition with Intel on another front – instead of just competing in the graphics market (where Intel’s integrated graphics capture a large market share), now Intel and Nvidia will offer competing physics software packages..

Read [GameSpot] Also Read [Engadget]