Nvidia acquiring Ageia

With the dominance of its GeForce 8 series in the PC gaming circuit and the resurgence of the PlayStation 3 in the console hardware race, Nvidia is anything but strapped for cash. Reporting on its third-quarter financials in November, the Silicon Valley-based graphics chipmaker reported its first-ever billion-dollar quarter, posting revenues that eclipsed an equally strong second quarter that saw a three-for-two stock split.

Today, the cash-flush semiconductor company announced it would be biting off a larger chunk of the gaming market with the purchase of physics chipmaker Ageia. Terms of the deal were not disclosed, and the buyout remains subject to pending regulatory approval and closing conditions.

Ageia debuted the world's first dedicated physics processor in 2006. The chip is designed to handle real-time physics calculations that allow for more impressive and diverse visual effects. In addition to PC titles, Ageia's PhysX software is employed in the PS3, Xbox 360, and Wii.