You're probably talking about Havok FX: announced with much hoopla 18 months ago, and now no longer listed on Havok's website. (Havok does the physics middleware for many game engines, including Source, and it's all CPU-based.)
That's why I believe GPU-based physics acceleration solutions are stillborn. I think ATI announced something similar at the time which has also vanished off the face of the earth.


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