A PPU (Physics Processing Unit) is a dedicated processor designed to handle the calculations of physics, mainly in video games. Examples of calculations a PPU might do include rigid body dynamics, soft body dynamics, collision detection, fluid dynamics, hair and clothing simulation, finite element analysis, and fracturing of objects. The idea is that specialized processors can do quickly what would take longer for a CPU, analogous to the way a GPU performs optimized graphics operations.
PhysX
The first processor to call itself a PPU was called the PhysX chip, introduced by a fabless semiconductor company called Ageia. The PhysX PPU is programmed with Ageia's Novodex SDK. NovodeX can also be used to program physics for general purpose hardware, it is just specialized to run optimally on the PhysX hardware.
On July 20 2005, Sony signed an agreement with Ageia to use the Novodex SDK in the Playstation 3.[1] Microsoft also added the NovodeX SDK to the Xbox 360 development kits. [2]
Slated for release sometime in 2005, the PhysX will be manufactured by companies like ASUS, akin to the way graphics cards are manufactured.
The Nintendo Revolution is rumored to also contain a PPU chip.
Hardware Specs
Currently these are the only specs available for their first chip set to launch by the end of 2005.
*125 million transistors *182 mm^2 die size *130 nm process technology from TSMC *20 watts power consumption *128 MB of GDDR3 memory