AMD has announced the development of an Open Physics Initiative in cooperation with Pixelux Entertainment. Under the agreement, Pixelux will integrate its Digital Molecular Matter technology with open source physics engine Bullet.

In a press release, AMD announced that it will pursue development of Bullet physics on Open CL and elements of the upcoming DirectX 11 API, while Pixelux will develop element physics software on Open CL and integrate it with Bullet.

At the same time, Nvidia is trying to close its PhysX technology. However, it seems ATI's new tech won't be open source either. It will merely integrate elements of open source Bullet technology into a new standard.

You can find the full release here.