Nvidia stands at a crossroads, with two closed, proprietary APIs that have mainstream potential: the general-purpose computing CUDA API, and the PhysX physics-acceleration API, which sits on top of CUDA. These are both promising technologies, but only owners of Nvidia hardware can harness their power. Meanwhile, there are two emerging open standards that mirror what Nvidia is doing with its proprietary development. One is OpenCL 1.0, and the other is a general-purpose GPU computing API, which Microsoft will include in DirectX 11. There are a relatively small number of consumer applications that use CUDA, PhysX, or OpenCL right now, but the possible applications for the tech are endless—grossly simplified, these APIs let graphics chips perform CPU-like functions.

The question Nvidia needs to be asking is simple: Will developers write their general-purpose GPU computing apps using a proprietary API that works on only a subset of PCs—those stuffed with Nvidia hardware—or will they use an open API that will work on every PC on the market?
More after the break.