Rumors of this have been circulating since the AMD/ATI merger was announced but it now seems that work has already started on creating the first CPU on a GPU.
The idea of joining both a CPU and a GPU in one chip has always been there but the technology was not available. Now, with most CPUs made on 65 nanometre and GPUS also moving to 65 from 80 and with 45 nanometre looming in the horizon, the time is right for just such a venture.
The end product should be able to provide the best performance/economy ratio and has the potential to rule the OEM market. Having a GPU and CPU on the same silicon can make for a very appealing product with an equally appealing price. With the ATI takeover AMD now has the expertise to create such a chip although expect the process to take over 18 months. Once released however, the product could result in the cheapest ever PCs.