At Computex, ATI made some bold statements revolving around their new technology that will allow three Radeons to be used in one machine, with one dedicated to physics processing. Part of that involved them saying that their system was faster than using an Ageia PhysX solution. Ageia has struck back, so to speak, to show the differences between ATI's approach and theirs. One very interesting note and one that makes a lot of sense was as follows:

Graphics processors are designed for graphics. Physics is an entirely different environment. Why would you sacrifice graphics performance for questionable physics? You'll be hard pressed to find game developers who don't want to use all the graphics power they can get, thus leaving very little for anything else in that chip.
Ultimately, ATI's solution was referred to as "questionable", which is almost comedic. ATI definitely upset Ageia, and now they will be both entering the ring of 3D desktop games and duking it out to see who really offers the best performance.