From Maximum PC:
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In a press release issued today, NVIDIA announced they have "signed a definitive agreement to acquire AGEIA Technologies, Inc," putting an end to internet speculation tieing the two companies together. AGEIA's stand-alone PhysX card showed some promise in early demos, but widespread developer support never materialized, and as Maximum PC's Michael Brown puts it, there was never "any reason why Maximum PC readers should buy one." Could the buyout change the outlook for physics processing? Will next generation NVIDIA videocards sport a dedicated PhysX chip? Details will surely emerge, so stay tuned!...
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I don't think it's going to do much for nVidia.