Bit-tech has reports that AMD might announce the use of gpu physics using Havok during the Game Developers Conference. Furthermore, Terry Makedon provided a tweeter feed announcing ATI's GPU physics strategy which may include a demonstration next week at GDC on 26 March. You can read more about this in the links already provided.
Edit:
Yup it is. Havok is indeed our partner of choice. Go check out the session if you are around, should be educational.
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